Refinancing with a Local Mortgage Broker
Refinancing a mortgage means you are paying off your current loan with a new loan. Whether looking for a lower monthly payment, or to tap into your home equity to help pay for renovations or consolidate debt, homeowners refinance their home loans for a number of reasons. While refinancing your mortgage isn’t a miniscule task, working with an independent mortgage broker can help you follow the process to ensure you complete your refinance properly and efficiently.
Before you jump into refinancing your mortgage, let’s take a look at the five main steps you should follow to ensure you get the loan that best suits your current financial situation.
1. Determine Why You Want to Refinance
What are you hoping to accomplish with your refinance? Do you want to change your mortgage from a 30-year-fixed-rate to a 15-year-fixed rate? Are you looking to reduce your monthly payments? Or, perhaps you’re hoping to remove FHA mortgage insurance. Whatever the reason, it’s important to have your goals set before you begin the mortgage refinance process.
2. Shop for the Best Rate
If you want to find the best mortgage rate, work with an independent mortgage broker. They will shop hundreds of loan options to find the best possible rate available for your financial situation. You can use FindAMortgageBroker.com to help find a local broker in your area who will work with you throughout the entire process of refinancing your loan.
3. Submit Your Application
Paperwork, paperwork, paperwork! Coordinate closely with your local mortgage broker to ensure you have all the proper documents available and filled out to officially submit your loan application.
4. Lock in an Interest Rate
Locking in your interest rate is a must. It ensures your interest rate can’t be changed for a certain period of time. For example, if your interest rate is locked at 2.5% and the next day rates jump up to 2.75%, your rate won’t change as long as your initial rate was locked. You’ll again work closely with your independent mortgage broker to close the loan before that locked rate expires.
5. Close on the Loan
Closing on the loan will feel similar to when you closed on your home, except this time, you’ll be walking away with only a new loan instead of a new house. The good news is, this is the final step in the process. Once you close on the loan and pay the closing costs, you’ll be all set.
Remember: your local independent mortgage broker is a home loan expert who can help guide you through the refinance process. If you’re unsure if refinancing is right for you, connecting with your mortgage broker will give you needed clarity and help you determine next steps.
Ready for a simple, painless refinance experience? Find your local mortgage broker today to get the process started.