Home Refinancing

We’ll Work with You to Find the Best Refinancing Terms Available

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Refinancing is a possibility to improve your current mortgage. It means getting a new loan, with new terms, and using that money to pay off your old loan. Your Loan Officer can help explain why refinancing a home loan might be the right option for you.

Reasons to Refinance

Lower Payments

Refinancing with a lower interest rate could result in lower mortgage payments. This may provide extra money each month for homeowners to save, or spend, however they choose.

Shorten Your Payment Term

If you want to build equity faster, or pay off your mortgage in less time, you can refinance to a shorter loan term. This may result in a slightly higher monthly payment, but you may also save money by paying less toward interest.

Convert Equity Into Cash

As a homeowner, you make payments to increase your equity, or value of ownership. Refinancing allows you to turn that equity into cash – referred to as “cash-out” refinancing. You are free to access and spend the money without tax penalty*.
*Consult a tax professional for more information.

Questions to Consider as a Refinancer

What are your financial goals?

There are many reasons to refinance, not just for low interest rates. Do your goals include lowering your monthly bills or shortening your loan term? Depending on what you are looking to accomplish, refinancing could be the answer.

Is your credit score in good shape?

It is no secret that the better your credit score, the better chance you have on landing a low interest rate. Credit scores can range anywhere between 300 to 850 with 800 and higher considered “exceptional” and 740-799 considered “very good.” If your credit score falls in the exceptional or very good range, you are in a better position to refinance.

Do you plan to stay in your home?

Due to closing costs, it can take months or in some cases years to break even and begin the actual savings. If you are moving or selling soon, refinancing may not be a great idea. But if you plan to stay in your home, a refinance may save you money in the long run.

Are you ready to make home improvements?

If you’re using the money for remodeling your home, you’re potentially increasing value of your home. Homeowners choose to cash out in order to pay for additional home improvements like finishing a basement, remodeling a kitchen, or putting on a new roof. All will add value to your home.

Our Process

While refinancing a home can appear complicated, it is our job to ensure it is as seamless as possible.

The loan process begins with an initial consultation with your Loan Officer. Together, you will outline goals and assess your financial situation. This will provide a better understanding of the mortgage amount you may qualify for. Here’s what you can expect from start to finish.

Prev Step

Next Step

1. Consultation (Prior To Pre-Qualification)

2. Pre-Qualification

3. Mortgage Process

4. Closing Process

5. Making Payments

While First Home Mortgage services many of our loans, it is possible servicing will be transferred. You will be mailed a notification that designates your mortgage servicer. If you have any questions, you can always contact 855.434.7005.

Your Loan Officer will review your financial information and determine if refinancing is the best option.

You will submit a loan application.

Your Loan Officer will gather your financial information, loan pre-qualification and provide the initial disclosures based on your loan terms.

This process will also include:

Ordering the appraisal; estimating the value of the home
Ordering/updating your credit report
Submitting your loan to Underwriting for review
Conditionally approving your loan (additional documentation might be requested)
Underwriting approval on all acceptable documents
Final loan approval – you are cleared to close
Your Loan Officer will keep you informed, answer your questions, and navigate you through the loan process.
When the loan application is received by the Processor, they make sure everything is complete and accurate.

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign and return the paperwork a minimum of three days prior to your scheduled closing date.

Your Loan Officer, or a designated employee, will tell you the amount of money you need to close on your home.

What happens on closing day:

Meet with your settlement agent as well as your Loan Officer, or designated employee.
Provide funds to the title company to cover your down payment, closing costs, taxes, insurance, and other costs.