Interest rates are at a historic low, resulting in\nmany homeowners refinancing their homes. If you currently have a mortgage, you\nare locked into your interest rate for the term of that mortgage. If you want\nto take advantage of the lower interest rates, you\u2019ll have to refinance.\nRefinancing replaces your existing mortgage with a new one. <\/p>\n\n\n\n\n\n\n\n

Reasons\nto Refinance<\/strong><\/h3>\n\n\n

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There are many reasons that homeowners choose to\nrefinance. Your decision to refinance depends on what your goal is, whether\nit\u2019s to lower your monthly payments, pay off your home sooner or get cash out\nof the equity in your home. If your goal is to lower your monthly payment, now\nis the time to take advantage of the lower interest rates. If your goal is to\npay off your home sooner, you have the option of refinancing from a 30-year\nloan to a 15-year loan. You can also refinance to get cash out of your home\nequity.<\/p>\n\n\n\n

Three\nTypes of Refinances<\/strong><\/h3>\n\n\n\n

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• Cash-out<\/strong> \u2013\nWith a cash-out refinance, you can get cash out of your home equity for a home\nremodeling project, to pay off credit cards or for whatever else you need money\nfor. This type of refinance increases the amount you are borrowing. It\u2019s also\nconsidered riskier and may require a higher credit rating.<\/li>\n\n\n\n
• Cash-in<\/strong>\n\u2013 This is the opposite of a cash-out refinance. When you do a cash-in\nrefinance, you pay a lump sum towards your mortgage, which can result in a shorter\nterm or lower interest rate. Most often, homeowners will do this type of\nrefinance to get rid of the monthly private mortgage insurance, or PMI,\npayments that are a result of putting less than 20% down on the cost of the\nhome.<\/li>\n\n\n\n
• Rate-and-term<\/strong> \u2013\nThis type of refinance is typically what is used when interest rates fall. It\u2019s\nalso the type used to change your loan term from 30-year term to a 15-year\nterm, or vice versa. <\/li>\n<\/ul>\n\n\n\n

  Closing\ncosts<\/strong><\/h3>\n\n\n

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  One thing that needs to be considered when refinancing is closing costs. These are the fees that go to the lender when you refinance. They are usually between 3% and 6% of the principal amount of your loan. The question you should ask before you decide to refinance is whether refinancing will save you more money than you will have to pay for closing costs. To determine how much you might be able to save, use a mortgage refinance calculator<\/a>. <\/p>\n\n\n\n

  How\nto Refinance<\/strong><\/h3>\n\n\n\n

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  • Determine what your goal is<\/strong>\n\u2013 Do you want to lower your monthly payments? Do you want to pay off your home\nsooner, or do you want to get rid of your monthly PMI payments?<\/li>\n\n\n\n
  • Determine who has the best mortgage\nrate<\/strong>\n\u2013 Determine\nthe current rates<\/a>, and be sure to pay attention to the fees\nthat you will be charged as well. <\/li>\n\n\n\n
  • Apply for a mortgage<\/strong>\n\u2013 NerdWallet recommends that you apply to three to five lenders, and that you\ncomplete the process within a two-week time period to minimize the impact on\nyour credit score. <\/li>\n\n\n\n
  • Prepare for an appraisal<\/strong>\n\u2013 Make sure your home is clean and decluttered.<\/li>\n\n\n\n
  • Choose a lender<\/strong> \u2013\nTake a look at closing costs, interest rates and loan terms on each offer that\nyou get.<\/li>\n\n\n\n
  • Lock in your interest rate<\/strong>\n\u2013 Once you choose a lender, your interest rate will be locked for a certain\namount of time, giving you and your lender time to close on the loan.<\/li>\n\n\n\n
  • Close on the loan<\/strong>\n\u2013 You will meet either a notary or loan officer to sign the closing documents\nand pay your closing costs, if they were not rolled into your loan. <\/li>\n<\/ul>\n\n\n\n

    Do you have questions about refinancing? We\u2019d love to help! Reach out to us at 571-234-5589 or by email at info@ratifiedtitle.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Interest rates are at a historic low, resulting in many homeowners refinancing their homes. If you currently have a mortgage, you are locked into your …<\/p>\n","protected":false},"author":3,"featured_media":1002,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ratified-title-group"],"yoast_head":"\n