Refinancing your mortgage might seem daunting, but a refi can lower your monthly payment or save you money with a better interest rate. We’re answering the most frequently asked questions about refinancing below, but if you’re ready to move forward or would like to explore your options, contact a SESLOC Mortgage Loan Officer for a free consultation today.
Can I Refinance if I Have Less Than 20% Equity?
You may qualify for a refinance if you have less than 20% equity in your home, depending on your credit rating. You may be required to pay private mortgage insurance (PMI), which will be rolled into your new monthly mortgage payment.
Can I Refinance Without Having My Credit Pulled?
Lenders will check your credit score and history to assess your record of paying bills and debts on time. Credit is just one of the factors commonly referred to as “The Four C’s” of loan legibility.
Are There Costs Involved in a Refi?
When you refinance, you are applying for a new loan and should be prepared to cover closing costs. The costs are typically about the same as what you paid when you closed on your original loan and will depend on various factors. Typically, you can estimate the costs to be 2-6% of your loan amount. No-closing-cost refinance options are available, but will likely result in a slightly higher interest rate, which could result in a slight increase in your monthly mortgage payments. A housing counselor can also help you understand different options to pay closing fees.
Use Freddie Mac’s refinancing costs calculator to estimate how much refinancing to a new loan could cost you.
How Long Does a Refinance Take?
The turnaround time is typically between 30-60 days, but this varies depending on your individual situation and market conditions.
Can I Refinance With a Different Lender?