Today on Dear Claire, Heather Paris talks about home refinancing.
Why would you want to refinance your home? Three common reasons you’d want to do this is Reason #1; if you have a higher interest rates than what is now available. Refinancing would lower your monthly payment. Reason #2, maybe you have an amazing new kitchen remodel plan for your house, but you don’t have the cash to do it. Refinancing will allow you to pull out equity from the value of your home to do that project. Reason #3 is because you’ve paid down the principal enough and would like to get rid of your property mortgage insurance.
The first thing you should is contact your local lender, or any lender that you’ve worked with in the past. They can walk you through every step of the process from start to finish, which usually takes about 30 days. Refinancing is essentially applying for a new loan on your home, so you’ll need to collect all your recent pay stubs, last two years in taxes, running records of any huge chunks of change in and out of your accounts, etc. Another thing they’re going to want to do is to do an appraisal on your house.
Since it’s a new loan, there will be new parameters on your note, along with a new interest rate, new appraisal established on your house, etc.
We posted to the blog today with even more information. Paris Group Realty has some fantastic lenders that can help you guys in the process who we work with regularly, so reach out if you need any assistance.
Take care and have a great day.