Have interest rates dropped? Does switching to a different type of loan sound appealing? Has your credit score improved? If the answer is yes to any of these questions, you may want to look into refinancing your mortgage. Below is information about refinancing a mortgage.
There are several reasons a borrower decides to refinance their mortgage. Below are the most common reasons people decide to refinance.
Determining your estimated costs when refinancing is important. Below are some fees a borrower may have to pay when they refinance.
Along with fees for refinancing a mortgage, a borrower should also consider how long they will be staying in the home, break-even point for a new loan, and possibility of paying additional interest. Use the refinance calculator to determine if refinancing is right for you.
If a borrower is considering refinancing a mortgage, they need to contact their lending company. The steps for refinancing a mortgage are similar to applying for a mortgage. Contact Meridian Mortgage for information on refinancing a mortgage.
Apply for refinancing by filling out a loan application. Meridian Mortgage does not charge an application fee. The lender will evaluate the costs of the new loan to ensure that the borrower is going to save money by refinancing their mortgage. When the application is accepted, the lender and homeowner will order a new home appraisal to make sure it compares to its established value and other homes in the area. This difference between the original mortgage amount and the appraiser’s new amount is the home’s equity. If the home’s equity is negative, the lender will not offer to refinance the loan.
Refinancing a mortgage means the borrower pays off the existing mortgage and creates a new one. Several factors including interest rates, origination charge, loan term, and monthly mortgage payment is used to determine how much a borrower will repay when refinancing. Below are some terms to understand in the refinancing process.
Once the new loan documents are signed and submitted, the lender will send them to the title company to finalize. The new mortgage lender (if different than the original lender) will wire transfer money to the existing lender to pay off the original home loan. The borrower or homeowner will sign closing documents for the original loan and pay any fees to the lender or other parties involved and the required government fees for recording the new mortgage.
For more information on refinancing a mortgage, contact Meridian Mortgage at 317-968-9500 or contact us online.
Meridian Mortgage Solutions is a subsidiary of Endeavor Capital, LLC Licensed through the Indiana Department of Finance and Insurance. License #17519 & 17520, NMLS#222524
Endeavor Capital, LLC and its DBA's are not acting on behalf of or at the direction of HUD/FA or the Federal government.
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