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FDIC-Insured - Backed by the full faith and credit of the U.S. Government
When you refinance, you replace your mortgage with a new one. This could save you money by reducing your monthly payments.
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Here, we explain when and why you may want to refinance and the steps you should take to get started. |
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You may want to refinance your home loan if you think you could get better terms with a new deal. This might be due to a change in your financial circumstances since you first borrowed, changes to interest rates or because your adjustable rate mortgage's fixed term is about to expire.
Or, you might want to refinance to release equity from your home that you’ve built up while paying your existing mortgage.
You don't need to refinance through your current lender. Comparing multiple lenders and their offers can help you find the best deal for you.
When choosing a lender, think about what’s important to you, like:
Once you’ve decided on a lender, complete the application process, and been approved, your new loan will completely pay off your old loan.
There may be refinancing costs. Some lenders may charge you a product fee for certain mortgage rates, but they should let you know ahead of time.
There are various refinancing programs available, which may meet your needs.
This program allows you to pay off your existing mortgage and includes the closing costs in your new mortgage loan amount. This option could allow you to reduce your loan term, interest rate, or both.
This allows you to unlock some of the value in your property by taking out a new loan secured against it. This option enables you to turn your home’s equity into a source of funds for the major expenses that crop up in life.
Reimburse yourself by getting a mortgage within 6 months of buying a property with cash, without the additional interest that would typically be charged on refinance transactions.
Once you’ve decided on a lender and are happy to refinance with them, it can be done relatively quickly. From beginning to end, securing a refinance loan typically takes between 30-45 days.
Timelines vary depending on the lenders involved and the complexity of the case.
