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After the first funds Rate cut of 2024, many homeowners have started to consider refinancing their mortgage to get a lower interest rate & save money each month.

This has prompted us to spend a moment and answer some of the most common questions about we get asked about refinancing.

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1. Why would I refinance my mortgage?

The biggest reason to refinance your mortgage is to save money, either in the short term or the long term. Common reasons why homeowners may want to refinance their mortgage include:

• To secure a lower interest rate.
• To get a lower monthly payment.
• To pay off their mortgage more quickly.
• To borrow cash against their home equity.
• To change their loan type.

2. How easy is it to refinance, is it similar to when I first got my mortgage?

Refinancing is actually faster, easier & has fewer fees than it is on an initial purchase. Often times the associated costs can also be included in your mortgage which means little or no cost to you upfront.

3. Will I really save enough money to make it worth refinancing?

Absolutely, depending on your current situation. Refinancing to a rate 1% lower on a $400,000 mortgage on average will save you over $300/month in interest.

4. How long do I have to wait until I can Refinance?

With us you’re able to refinance after making only 6 payments, in this market with how much rates have fluctuated you might be able to start saving money sooner than you think.

5. What refinancing options are available?

• Rate-and-term refinance. Sometimes known as a regular refinance, a rate-and-term refinance will pay off your old mortgage with a new loan that has a more favorable interest rate or loan term — without taking out cash and increasing your loan balance.
  
• Cash-out refinance. A cash out refinance is taking out a new mortgage based on your home’s current value, paying off the balance of your current loan, and keeping the difference as cash. The amount you borrow is repaid as part of your new mortgage. Many homeowners use cash-out refinancing to pay for home improvement or education expenses, or to consolidate high interest debt such as credit cards.

6. How long does it take to refinance a mortgage?

With us it only takes an average of 20 days or less to refinance, thanks to our seamless & efficient process which utilizes cutting edge technology to save you time and effort.

7. Can I sell my home after refinancing?

Absolutely, refinancing doesn’t effect the ability to sell your home. An important thing to keep in mind is to make sure your mortgage doesn’t have a pre-payment penalty.

8. If I have a 30 year mortgage, when I refinance will it be another 30 year mortgage?

When you refinance you have the ability to choose between different loan programs and terms. Most lenders offer 15 or 30 year terms, when you refinance you are “reset” to that term.

A unique option we have is called a Flex Term which allows you to choose any loan term between 15 and 30 years. With a flex term you are in charge of how long your mortgage lasts and you’re not stuck with a set 15 or 30 year term.

This means that you can reduce your interest rate without adding time onto your mortgage. Say you’ve had your 30 year mortgage for 1 year & don’t want to add more time onto it. With us you can choose a 29 year term instead and save 1 year of interest in the long term on top of the monthly savings.

9. Do I have to refinance with my current lender?

Absolutely not, you do not need to refinance with your current lender or the one who helped you purchase your home.

When you refinance you are able to use whichever lender you choose and shop around. You can also save time by having us shop around for you as a licensed Mortgage Broker.

10. Can I refinance if I don’t have 20% equity?

Yes, You have the opportunity to refinance even if you have a recent mortgage or haven’t accumulated a lot of equity. You might even be able to save more money by reducing your mortgage insurance payment with a lower LTV.

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Reach out to us any time to learn more about our loan options, We’re always available & here to provide expert guidance and support for you!

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