Can someone please tell me what refinancing a mortgage invovles?

Question by dutchess: Can someone please tell me what refinancing a mortgage invovles?
I have a mortgage-I pay above the amount due each month-not much-but every little bit counts-
The mortgage rates seem good-is this what they call refinancing?(Only adults with a mortgage answer please!!!!!!)

Best answer:

Answer by Judy
Should I re-finance calculator

Generally if you can get 1 /12 % lower and you know you will stay in the home for 5 to 7 years it’s a good idea. This is a break-even point.
Don’t forget about all those closing costs.

Before you start paying off a mortgage always make sure you have at least 6 months worth of living expenses in a saving account and have all debts paid off including car loans.

In some cases, you are better paying down your mortgage than re-financing.
And for goodness sake – stay away from 5/5’s and 5/1 ARM’s – yes, banks are still pushing these scams.
Rates on 15 year mortgages are super low – if you decide to re-fi – good luck.
You will need equity in your home of about 20% – which will allow you to avoid that nasty PMI.
PMI is like throwing thousands away a year.

Make sure you have no credit card debt and check your reports at
Annual Credit
Average rates today:
4.52% on a 30 year
3.95% on a 15 year
They will fall down slightly in the next few weeks.

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One Response to Can someone please tell me what refinancing a mortgage invovles?

  1. Army Wife says:

    You are in luck. I literally just refinanced yesterday. It only took a day with finding the right person. This is what it involves:

    calling a home broker and stating you are looking into refinancing. They will ask for your social security number, birthday, what you pay now for your mortgage, what kind of loan you have, and your gross monthly income. They will then look up your credit score and make sure you haven’t missed any payments in the last year. Once they have all of that information then they’ll look at what kind of interest rate they can give you. My husband and I had a 6.4% rate when we bought the house 2 years ago and now they are able to give us one of 4.8% (lowest you’ll find it). If you like the rate then they’ll look at how much houses are selling for in your area to base how much your house needs to be appraised for. Our house needs to be appraised for 127,500.00. If we meet that appraisal then we get the lower interest rate. If we wouldn’t have met that appraisal price then we would come up with the difference (if we wanted). Therefore if our house only appraised for 127,000.00 then we’d have to pay 500.00. Very easy to have the house meet the standards at this day in age. Hope this helps and good luck to you!

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