Mortgage Refinance Process
If you went through the mortgage process to purchase a home in the last decade, the mortgage process has definitely changed. With new regulations and laws comes more paperwork in the mortgage buying process. With today’s interest rates at historically low rates, we sometimes wonder why homeowners who purchased a home with a mortgage in the past 5 years do not revisit their refinance options as mortgage rates change.
Buying a home can be a process filled with obstacles but smart homeowners who stay educated on the mortgage process understand the importance of managing your borrowing costs when refinance options are available.
If you plan to stay in your home and your mortgage carries a borrowing interest rate above 4.25%, you may be in an advantageous position to lower your mortgage borrowing costs by shopping for a lower refinance rate.
Take a moment to consider the end goal when entering the mortgage refinance process.
For most homeowners seeking to refinance their mortgage, their main benefit will be a lower monthly payment on their mortgage, usually a result of lower borrowing costs on another mortgage with a similar term. Some homeowners want to pay off their loans even faster, while also saving on interest payments and choose to refinance to a reduced term mortgage loan.
The value of a refinance mortgage and getting a reduced refinance rate can significantly reduce the amount of interest the homeowner will end up paying on their mortgage loan.
Compare Refinance Rates from Lenders
Once you have decided a refinance mortgage is the right decision for you, it’s time to consider some key numbers like your existing interest rate, mortgage loan amount, home value, credit score and your options for refinancing with your existing mortgage lender or a new lender.
Try our mortgage rate calculator to determine various rate scenarios for your State.
You’ll need to know (or make some educated guesses about) the fees you’ll pay, your new interest rate and your new loan amount.
The mortgage refinance calculator will help guide you with estimated potential savings and monthly payment approximations so that you are prepared to start comparing your refinance rate quotes.
Working with RefinanceRate, you can shop and compare refinance quotes from licensed mortgage lenders nationwide.
Comparing Mortgage Lenders Saves Cash
Communicate with potential mortgage lenders about your mortgage refinance quote inquiry and compare offers from multiple lenders. It’s always best to shop around and compare multiple refinance rate offers before moving forward.
From each lender, request an estimate for your refinance rate mortgage that details the loan terms, projected payments, estimated closing costs and other fees related to your refinance.