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Refinance Mortgage Loan

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In simple terms, Refinancing means replacing an existing mortgage loan with a new mortgage loan with different terms. Common reasons to get a refinance mortgage include:

  • Paying off your first mortgage and reducing your mortgage rate and monthly payments.
  • Paying off your 1st mortgage and taking out additional cash.
  • Paying off your 1st mortgage and reducing your mortgage terms (i.e. refinancing from a 30 year loan to a 15 year loan).
  • Paying for home improvement, credit card and other debt consolidation as long as the borrower qualifies with their current home equity. The borrower can then refinance with a loan amount larger than his or her current mortgage and keep the cash difference (this is known as a cash-out refinance and will be discussed in more detail later).

Steps in the Mortgage Refinancing Process:

Step 1 - Do your Homework!

You need to do some research before you start contacting lenders and looking up quotes for a mortgage refinance loan. It is important to find out how much you owe on your current mortgage, as well as the current the value of your home. You can use mortgage calculators and figure out home value like housevalues.com to obtain this information.

Why is it important to do your own research and preparation? In this current economic downturn, plummeting home values might mean that a refinance mortgage may not even be a viable option. You need to make sure you don't owe more on your current mortgage than your home is currently worth. If that's the case, you probably won't be able to refinance your mortgage loan. On the other hand, if you have built up enough equity (15% or above is a good benchmark) then you might be a good candidate for refinancing and you can move on to the next step!

Step 2 - Get a Quote from Total Mortgage

The next step should be easy for most homeowners who already have an existing mortgage. You simply have to apply for a quote from a lender to see what refinance mortgage you qualify for. To apply for a free quote today, go to apply for mortgage loan or call 877-868-2503 and speak to a loan officer today!

Step 3 - Financial Review

Even after you've received a quote and the interest rate you qualify for, it still doesn't necessarily mean you should commit to the refinance loan immediately. Calculate the potential savings and remember to incorporate the up-front, ongoing, and potentially variable costs when comparing your savings with the cost of refinancing. If you are unsure whether or not a refinance mortgage will be beneficial, you need to talk to a financial advisor.

*If you would like to speak to a licensed loan officer to learn about mortgage refinancing process, call today at 877-868-2503.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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