Frequently Asked Questions

How can I tell if refinancing to reduce my monthly payment is worthwhile?

You must respond to two critical questions:

1. How much will I be able to save? Your credit score, property worth, and mortgage rates may have changed since you purchased your home. If any of these have improved, you should use our refinance calculator to see how much you can save on your monthly payment.
   
   
2. Will the savings be sufficient to pay the costs? To avoid paying anything out of pocket at closing, you might include the fees of securing a new mortgage in the total refinance price. However, refinancing to lower your payment may result in a longer loan term, resulting in you paying more in interest over time.

To explore if refinancing your house can help you lower your payment, speak with a Home Loan Expert or use our refinance calculator.

What does it mean to refinance? How is it going to help me get a cheaper monthly payment?

When you refinance your house, you're taking out a new loan with new terms. You'll need a loan that fits one or more of the following requirements to minimize your monthly payment:

1. A Lower Interest Rate: The higher your interest rate, the more you'll pay for your mortgage now and in the future. If you don't shorten your mortgage term, a lower rate equals a cheaper payment.
   
2. Gets Rid of Private Mortgage Insurance (PMI) — If you didn't put down 20% on your first house, you're probably paying private mortgage insurance (PMI). You can refinance to get rid of this expensive monthly payment if the value of your home has grown and you have adequate equity.
   
3. Refinance to a Longer-Term Loan — Refinancing to a longer-term loan allows you to spread your debt over a more extended period. While you will pay more interest in the long run, your monthly payment will be lower.

What exactly is equity? How can it assist me in lowering my monthly payment?

The appraised worth of your home minus the amount you still owe on your loan is known as home equity.

The more equity you have, the better the refinance interest rate you can get, thus lowering your monthly payment. Private mortgage insurance (PMI), a pricey monthly tax included in many mortgages with a down payment of less than 20%, can be eliminated if you have enough equity. Use our refinance calculator to discover if you have enough equity to refinance and earn a reduced monthly payment.

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