Refinancing is the latest buzz word throughout the mortgage and real estate world. But what is refinancing, exactly? In it’s simplest terms, refinancing is replacing an existing mortgage with a new one. The process is similar to when you applied for your original mortgage: researching options, gathering the correct documentation, and submitting an application.
Before you jump onto the refinance bandwagon, it’s important to understand how the refinancing process works as well as key considerations based upon your individual situations. To start the refi process, ask yourself these questions:
- What are my goals? It could be to lower housing payments, pay off your mortgage faster, or use home equity to better manage debt or make home improvements.
- Does refinancing make sense financially? Refinancing can lower your interest rate, but the new rate could increase your monthly payment and/or cause you to pay more through the life of the loan.
- There are costs and fees associated with refinancing; are you able to afford them? Funds are needed for the application fee, closing costs, and title insurance. Some costs may be able to be rolled into the mortgage itself, others may not.
- Have you accounted for payoff amount or pre-payment penalties? Double-check with your current lender to determine these amounts, and how they may affect your refinancing.
- Can you gather the personal documents needed to apply for a refinance? Needed documents include pay stubs, tax returns and/ or W-2s, credit reports, and statements of assets and debts.
Once you’ve evaluated your goals, collected all the needed documentation, crunched all the numbers, and ultimately determined if a refinance makes sense for you, it’s time to proceed with the application process. Contact a trusted, qualified lender to receive a loan estimate, submit your application, and you’re on the way to a successful refinance!
Pacor Mortgage offers a variety of refinance loan choices, including options that address many of the unique challenges facing homeowners today. Whatever your refinancing needs, we’re ready to help you understand your options. Learn how fast and easy refinancing can be by calling us at 773-881-7744 or visiting our website.
Sources:
https://www.investopedia.com/mortgage/refinance/9-things-to-know-before-you-refinance-mortgage/
2019 Pacor Mortgage Corp.
Loan officer NMLS #: 208731. Loan inquiries and applications in states where I am not licensed will be referred to a Pacor Loan Officer who is licensed in the property state. Pacor Mortgage Corp. is located at 14930 S Cicero Ave, Oak Forest, IL 60452, Phone 773-881-7744 (NMLS #120945). Pacor Mortgage Corp. is an Illinois Residential Mortgage Licensee #MB.0000892 (IDFPR, 100 W. Randolph Street, 9th FL, Chicago, IL 60601, ph #888-473-4858). Pacor Mortgage Corp holds additional licenses in the following states: FL #MLD1075; IN #DFI13177; OH #MB.804151.000; PA #43855; WI #120945BA; MI #FL0828, MI #SR1130, CO, and CA.This is not an offer for an extension of credit. Any of the advertised products may be discontinued at any time. Information and pricing are subject to change at any time and without notice. Pacor Mortgage Corp. is not affiliated with your current lender, nor is it an agency or extension of the Federal Government, Fannie Mae, Freddie Mac or HUD.