Home  >  Home Mortgage Loans  >  Refinance Mortgage loan

Refinance Mortgage Loan

Mortgage refinancing can offer many financial advantages to consumers, including monthly savings and cash for costly projects.

When homeowners get a refinance mortgage loan, they replace their current loan with a new home loan. Homeowners refinance mortgage loans to:

  • Lower their interest rate and reduce their monthly mortgage payment
  • Consolidate high interest rate payments like credit card debt into low rate, tax deductible mortgage interest.
  • Get a cash out refinance mortgage loan to pay for home improvement projects, buy a new car, or fund other costly purchases.
  • Change their home loan terms from longer term mortgages to shorter terms with lower interest rates, typically from a 30-year to a 15-year fixed term.
  • Change from an adjustable-rate mortgage to a safer, fixed-rate mortgage with a low interest rate or to another ARM with a low introductory mortgage rate.

Steps To Getting A Refinance Mortgage Loan

Step 1 - Do Your Homework!

Do some research before you start contacting lenders and getting quotes for a mortgage refinance loan. Find out how much you owe on your current mortgage, as well as the current the value of your home. You can use a website such as housevalues.com to estimate your home's value.

Because home values have fallen over the last few years, many homeowners don't have enough equity in their homes, typically at least 10 to 20 percent, to qualify for a mortgage refinancing. But you might still be able to qualify for a refinance mortgage loan if you are "underwater," or owe more on your mortgage than your home's current value.

Under Fannie Mae's DU Refi Plus and Freddie Mac's Refi Relief programs, homeowners can refinance mortgage loans if their current first mortgage is as much as 125 percent of their home's current value.

Step 2 - Calculate Your Refinance Mortgage Loan Savings

Calculate the potential savings and remember to incorporate the up-front, ongoing, and potentially variable costs when comparing your savings with the cost of the mortgage refinancing. If you are unsure whether or not a refinance mortgage will be beneficial, you can talk to a financial advisor.

A mortgage calculator can tell you how much you'll save with a mortgage refinancing. You can also use a mortgage calculator to find out if you should pay points to lower your interest rate, compare two different mortgages, and compute the tax advantages of a mortgage refinancing.

If you still have questions or don't want to use a mortgage calculator, you can call a mortgage expert directly (877-868-2503) to find if you qualify for a refinance mortgage.

Step 3 - Get A Refinance Mortgage Loan Quote From A Lender

The next step for getting a mortgage refinance is to apply for a quote from a lender to see what refinance mortgage you qualify for. A mortgage expert can find the best refinance mortgage and help you complete the loan application.

To apply for a free quote today, apply for a mortgage loan or call 877-868-2503 to speak to a mortgage professional.

Step 4 - Complete The Refinance Mortgage Loan Application

To complete the refinance mortgage application, homeowners typically provide two recent pay stubs and two years of W-2s if they're salaried employees. Self-employed workers seeking a mortgage refinance should provide two years tax returns and a YTD profit and loss statement. Providing three months of bank statements and can speed up the application.

Lenders usually verify the homeowner's credit, income, and assets, and check the home's current market value before approving the mortgage refinance.

Lenders approved by the FHA can offer streamline refinance programs to borrowers who want to avoid credit and income verifications. Learn more about FHA streamline refinance.

*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.

Lock Your Lowest Rate

Call 877-868-2503 or fill out
this form now!