While finding the funds to buy a house may seem like the toughest challenge of all, it’s not. When the time comes for you to have to refinance your mortgage, that’s when you find yourself in a mystery. Believe it or not, refinancing your mortgage isn’t a quick-call-and-an-email process; the paperwork is overwhelming and the process itself – draining.

We’re laying out a few great tips along with a step by step guide to help you wrap your head around refinancing your mortgage and doing it the best way possible.

  • Use a Mortgage Refinance Calculator

Once you are determined it’s the right time to refinance, start crunching the numbers. To shop for the best mortgage, use a mortgage refinance calculator. Try to get the information on your new interest rate and the loan amount for the most accurate results. The calculator will show your monthly savings, future payments, and lifetime savings and therefore help you get a solid idea of what to expect. What is more, you can play around with our Home Estimate calculator based on your neighborhood to see where you stand.

  • Determine Your Goal

You should be sure about the reason you are refinancing. The goal of your refinancing should be to shorten or maintain your current loan term while lowering your interest rate

  • Learn Your Current Credit Score

Stay on top of your credit score by checking your credit history. You’ll be offered potentially great mortgage refinance interest rates if you score well

  • Research Your Home’s Current Value

Get the information on the recent home purchases and sales in your neighborhood to understand the current fluctuations of money in real estate as well as the value of your property. You could be in for a substantial price.

  • Know Your All-In Costs

Home loan refinancing can come with a bunch of fees such as application fees, origination fees, the cost of an appraisal, a document processing fee, a credit report charge, an underwriting fee, title research and insurance, tax transfer fees and points, recording fees, to name a few. Even so, don’t forget to obtain a precise estimate of mortgage loan fees from each lender you consider.

  • Gather Paperwork

Since most of us do our financial business online these days, it’s challenging to gather all the paperwork. But, since you don’t have a choice, you’ll have to put in your best efforts into gathering everything from statements to pay stubs, and everything else in between.

  • Lock Your Rate

To make sure your loan rate doesn’t change a few days or hours before closing, make sure you lock in your mortgage refinance rate with the lender. It is optional but necessary for the logically minded.

  • Have Cash on Hand

Set some money aside to be able to cover for property taxes, insurance, closing costs and other similar expenses to pay at closing. The fees to pay should be listed in your loan estimate to avoid any unpleasant surprises.

Final Tips

A significant part of your refinance solution could be a government-sponsored mortgage program, especially if you owe more than your home is worth. These programs change names from time to time, but they do help homeowners refinance their mortgage regardless of how little equity they have in their home. If you need to consult with a professional on how to refinance your mortgage, talk to us! We’ll be happy to help.