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Refinancing

Whether you're looking to lower your monthly payments, secure a better interest rate, tap into your home's equity, or change the terms of your loan, refinancing can provide a pathway to achieve your financial goals!

Refinancing your mortgage can be a strategic and beneficial financial move as a homeowner.

Learn the benefits

Some Key Reasons to Refinance

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Reduce current loan term or get a better loan type

Refinancing enables you to modify the terms of your loan. For example, you can refinance from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, providing stability and predictability in your monthly payments. Conversely, you could choose to refinance to an ARM if you anticipate selling the property in the near future or want to take advantage of lower initial interest rates.
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Take advantage of lower interest rates

If interest rates have significantly dropped since you obtained your original mortgage, refinancing can provide an opportunity to secure a better interest rate. A lower rate can lead to substantial savings* over the life of your loan, potentially reducing the overall cost of homeownership!

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Cash out or use money for home improvements

Refinancing can enable you to tap into your home's equity, which is the difference between the property's current value and the outstanding mortgage balance. Through a cash-out refinance, you can convert a portion of your equity into cash, which can be used for various purposes such as home improvements, debt consolidation, or even funding important life events.
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Consolidate your debt

If you have high-interest debt, such as credit cards or personal loans, you might be able to opt for debt consolidation** through refinancing. By rolling your high-interest debt into a lower-rate mortgage, you can simplify your finances and potentially save on interest costs!
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Adjust to a death or divorce

Refinancing is often pursued to address changes in ownership, financial responsibilities, and personal circumstances. It allows for the necessary adjustments to mortgage terms, potentially benefiting the surviving spouse or divorcing parties by ensuring the mortgage aligns with an individual's needs and financial capacity. As your mortgage professional experienced in these situations, we can help you navigate the refinancing process effectively.
*As a result of refinancing, your total finance charges may be higher over the life of the loan. Including closing costs or financing loan fees your total finance charges may be higher over the life of the loan. Reduction in payments may reflect longer loan terms and higher interest charges over the life of the loan.

**Applicant should not assume that any debt will be eliminated by refinancing since the debts are consolidated into a new loan.

Seven steps

The Refinance Process

Refinancing a mortgage basically follows the same steps as a first-time mortgage loan process -- minus involvement of realtors, so it tends to be faster. Here are the general steps for the refinancing mortgage loan process:

1

Get prequalified

Sit with one of our loan officers and they can help you determine the home price range you want to look for, based on your credit, income, and assets.
2

Application

You'll fill out a refinancing application for a specific loan amount. Your loan officer will help find a product that fits your needs. You'll want to provide any/all documentation needed, as soon as possible
3

File opening

When your documentation comes back in, we'll order the title, appraisal, and tax transcripts. Your initial employment verifications (if applicable) are completed. Flood certificates (if applicable) are obtained, and then your file moves into processing.
4

Processing

The lender reviews the initial file and verifies that sufficient information has been provided. Your file is submitted to underwriting.
5

Underwriting

The underwriter ensures your loan meets all guidelines, then issues an approval with any outstanding conditions, or a Mortgage Commitment if only minor conditions remain.
6

From approval to Clear to Close

Your processor will work to obtain any documentation to clear any remaining conditions. This is resubmitted to underwriting, where it is reviewed, and when cleared, the underwriter issues a Clear to Close. With this in hand, the file moves to the closing department.
7

Finish

Our closing department and closing agent work together to finalize numbers. There is a final verification of all debts, employment, and assets used for closing. Closing documents are drawn up. You'll meet with the closing agent, sign the documents, and receive a check!
    Whether you're seeking to reduce your monthly payments, access cash for important purposes, or optimize your loan terms, refinancing can open up a range of financial possibilities. At Elite Mortgage Group LLC, we're here to guide you through the refinancing process, helping you understand your options and maximize the benefits of refinancing.

    Will I Need an Appraisal?

    An appraisal is an important step in the refinancing process as it helps determine the current market value of the property. Most commonly, the Loan-to-Value (LTV) ratio generally determines if a property appraisal is required when you are seeking to refinance. In some cases, however, a Property Inspection Waiver (PIV) may be obtained to avoid an appraisal.

    As professional mortgage professionals, we are happy to discuss specific appraisal requirements and provide clarity on whether an appraisal is necessary for your particular refinancing situation. Reach out to us today!



    Should I Refinance?

    Whether you're seeking to reduce your monthly payments, access cash for important purposes, or optimize your loan terms, refinancing can open up a range of financial possibilities.

    At Elite Mortgage Group LLC, we can help you determine if now is a good time for you to refinance. We're here to guide you through the refinancing process, help you understand your options, and enable you to maximize the benefits of refinancing.

    Start the Process

    Ready to start the process of securing a mortgage for your investment or second home? Our experienced Loan Officers are here to guide you every step of the way. Reach out today and take the first step towards making your real estate goals a reality.

    FAQs about Refinancing

    What is a mortgage refinance?
    Mortgage refinancing is the process of replacing your existing mortgage with a new one. This is usually done to lower the interest rate, reduce monthly payments, shorten the loan term, switch from an adjustable-rate to a fixed-rate loan, or to access equity in the home.
    When is a good time to refinance?
    A good time to refinance is typically when interest rates have dropped significantly compared to the rate on your current mortgage, or if your financial situation has improved and you can afford higher payments to shorten your loan term.
    What costs are associated with refinancing?
    Refinancing a mortgage often involves many of the same types of fees as with the original mortgage, such as origination fees, appraisal fees, closing costs, and others. It's important to factor these costs into your decision to ensure refinancing is financially beneficial.
    Can I include closing costs in my refinance?
    Yes, it is possible to include closing costs when refinancing your home. This is known as a "no-closing-cost refinance" or "zero-closing-cost refinance" option. We will be happy to discuss the pros and cons of including closing costs in the loan to help you determine if it aligns appropriately with your financial goals and situation.
    Does my mortgage broker charge me to refinance?
    There are no fees from Elite Mortgage when refinancing.
    How much equity do I need in my home to refinance?
    The amount of equity needed to refinance can depend on the type of loan and the lender. Many lenders require at least 20% equity, although there are options like the FHA Streamline Refinance that require less.
    How long does the refinancing process take?
    The refinancing process typically takes 30 to 45 days but can vary based on the lender, borrower's circumstances, and whether the mortgage market is busy.
    What is a cash-out refinance?
    A cash-out refinance allows you to refinance your mortgage for more than you owe and take the difference in cash. This effectively reduces the equity in your home but provides you with cash for other uses.
    Can I refinance if I have bad credit?
    Yes, it is possible to refinance with bad credit, although it may be more difficult. Some loan types, such as FHA loans, are more accessible to those with lower credit scores.
    How does refinancing affect my credit score?
    Refinancing can have a small impact on your credit score. Applying for a new loan triggers a hard inquiry on your credit report, which may cause a temporary dip in your score.
    Will I need an appraisal to refinance?
    Most often, yes. Lenders will require an appraisal to determine the current value of your home and how much they're willing to loan you.