Basics of Refinancing

Basics Of RefinancingBasics of Home Refinancing

If you have never undertaken a refinance before you may have questions. The term basics of refinancing is a bit of an oxymoron as there isn’t really all that much that’s basic about a refinance. Still, if you are thinking of undertaking the task, here is some of what you need to know.

Four Steps to the Basics of Refinancing

  • Pros/Cons: This may seem like something of an obvious statement but the truth of the matter is that a refinance is a big deal. It’s not simply about getting a lower rate on your loan. If you are 15 years into your loan, even if you can get a lower rate by refinancing now, it may not be in your best interest; Because of interest. You have already paid the lion’s share of your interest when your loan is half way paid off. If you refinance you are taking out a new loan with new interest. You need to be apprised of the whole picture of your refinance, not just the lower rate.
  • Documents: You need to have all of your documents related to home events and loan events. It would be helpful if you keep everything relevant in one place, but time and carelessness can misplace vital things.
  • Lenders: Once you’ve decided to go with a refinance because you think it makes sense for you, then you need to find a lender. The tedious act of fielding offers can be time consuming.
  • Costs: You need to be sure of any up-front costs which are required.

Of course, when you are mulling over the basics of refinancing you may still feel like your individual loan has stipulations that you’d like some clarity on. Even if you have all the details already you may want to find more lenders to get other opinions. As a leader in this industry, Paramount Equity can help you every step of the way.


The Paramount Pledge™ – Triple Protection

The Paramount Pledge. It is our promise to you that we’ll provide the best rates, won’t charge you an application fee to lock in a rate and will ensure we can close and lock in a rate at the terms we provide.

No Application Fee – Other lenders charge hundreds of dollars to start the loan process with you. Paramount Equity Mortgage® will never ask you to pay an application fee just to lock in your rate.
Better Rate Warranty – After you complete a loan with us, we will cover most of the cost to refinance or purchase within the next seven years, for any reason.
Set & Secure Closing Guarantee™* – Once we receive all required borrower information, your signed disclosure and lock your loan, we guarantee we can close your loan at the rate and terms we provided. If we can’t, we will pay you $500.
* The Set & Secure Closing Guarantee is not valid in the event that there is an unforeseen change such as, an appraisal coming in under value, undisclosed debt at the time the loan was pre-qualified, a change in income due to loss of job or change in employment, etc. This guarantee is also not valid in the event that you withdraw your application or request a change to the terms of your loan. A change in terms would consist of, but is not limited to, a change in loan amount, fixed vs. adjustable rate, number of years the loan is amortized, adding/removing a borrower, etc.