What is a Home Refinance?
Refinancing is the process of replacing an existing mortgage with a new loan. Getting a home refinance has multiple benefits. These include reducing monthly payments, changing loan programs, or lowering interest rates.
Before you decide to get a home refinance, it's important to know how the process works. You also will want to consider the pros and cons for your situation. Many homeowners are surprised at the amount of documentation needed for approval. There are other options that require minimal paperwork.
Benefits of a Home Refinance
- Reduce the length of your existing loan. If a homeowner took out a mortgage earlier in their career, a 30-year mortgage probably made the most sense. For those who'd like to pay off their mortgage sooner, getting a home refinance can reduce the loan term.
- Lower your monthly payment. With a lower monthly mortgage payment, you are able to put your earnings towards other expenditures or debts. You can also apply the money saved towards your monthly mortgage payment. This would allow you to pay off your mortgage loan sooner.
- Build equity faster. If a homeowner is in the position of making a higher monthly payment than usual due to an increase in salary, you may want to switch from a 30-year mortgage to a 15 or 20 year mortgage. This allows you to build equity more quickly and save money on financing fees.
How do I know if I should refinance?
In the past several years, the costs associated with refinancing have dropped dramatically. Most clients who refinance with Priority Lending LLC see little to no additional fees added to their mortgage after rebates and credits. Current guidance recommends that you reduce the rate on the current mortgage by at least 1% if you are keeping the same mortgage term. If you are reducing the mortgage term, you can refinance with as little as a 0.5% reduction in the interest rate. Our refinance calculator can help you determine if a home refinance would save you money.
Priority Qualified Approval
Underwriting a home loan is made up of two pieces: the home and the borrower(s). Most people overestimate the amount of information needed regarding the home. Really, all that is required is title work, an appraisal, and a contract - very minimal.
The borrower can be the complicated piece that can take underwriters down a wily road full of twists and turns. We are required to verify current income, job history, credit scores, any negative credit history, rent history, large deposits, etc.
With a Priority Qualified Approval, we can issue you an “all clear” to show the potential seller that you, the borrower, are fully underwritten and ready to purchase their home. Get your home loan 85% complete before you even locate the house of your dreams.
Get a Priority Qualified Approval
Priority Lending LLC has been providing mortgage loans and helping people like you fulfull their dreams since 1997. As the most trusted mortgage lender Tucson has, Priority Lending LLC provides the most options to assure you get exactly what you need. We do mortgages in easy to understand terms.
Working alongside your real estate agent, we provide the guidance and expertise to keep the process of buying your dream home, vacation home, or investment property on schedule and without delays.
Based in Tucson, our Home Loan Officers can assist you with your lending needs throughout Arizona and Texas. Contact Priority Lending LLC today to purchase your dream house!
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