3 Common Questions about Refinancing
It’s refinancing season! Mortgage rates have dropped, the new school season is beginning, and more people are looking to purchase a home or refinance their current home. We answered three common questions homeowners ask us about mortgage refinancing.
1.) When can you refinance your home?
There is no specific time frame for refinancing your home; however, it is not common to refinance soon after closing on your original mortgage. We advise our clients to refinance when mortgage rates have dropped and when our clients can lower their monthly mortgage payment. Our mortgage advisors consider all fees and costs associated with refinancing when determining if our clients will save money in the long-run.
2.) How much does it cost to refinance a mortgage?
When refinancing a mortgage, you will have to pay closing costs. Estimated closing costs can be about 2-4% of the loan amount. Closing costs may include origination fees, appraisal fees, title and settlement fees, and mortgage recording taxes. All closing fees are discussed and disclosed during the closing process. Click here to learn more about the closing process!
3.) What do I need to refinance my house?
Typically, a mortgage refinance requires similar documents as when purchasing. Some materials you may need, but are not limited to, include:
- Tax returns
- Bank statements
- List of assets and liabilities
Before you consider refinancing your mortgage, it is vital to outline and understand your financial goals. Do you wish to lower your monthly mortgage payment to reduce your expenses? Do you need to take cash-out of your home to pay off other debts? Click here to learn more about what refinancing may allow you to do.
At GuardHill, we always advise our clients on which financing scenario is best for them. Get in touch with us today to better understand your mortgage refinancing needs!