What Is Home Refi?

With a home mortgage, you have a lot to consider. Balancing payments, accruing equity and incorporating your payments into your larger financial plan can all be a bit of a headache. Add unfamiliar terms like “home refi” and it can get overwhelming fast.

Top Ten Things to Know: Home Refi Edition

  1. Home Refi (refinancing) is the process of closing out your initial loan and taking out a new mortgage to pay off the balance of your previous loan.
  2. People generally opt to refinance their home A) To acquire better interest rates for a number of years that suits their budget or B) To take out a mortgage for more money and use the remaining cash to pay off another debt.
  3. Refinancing often can be cheaper overall, but comes with several fees, such as survey, attorney, and closing fees.
  4. You can refinance with the same lender you took out your initial loan with, or with a new lender.
  5. Often times, lenders will charge you “points” to obtain a lower interest rate when paying off the current mortgage (generally $1000 per $100,000 remaining in the balance).
  6. In order to refinance your mortgage, you will need a credit report and a fully completed application.  Additional documentation will be required once the application is reviewed.
  7. Having a solid credit score and accrued equity in your home can improve the rate the lender offers you.
  8. Often times, when you inquire about refinancing, your current lender will offer you a competitive rate to keep your business.
  9. A home refi may not be the best option for you if you intend to move in the near future–homeowners generally stay in homes they’ve refinanced.
  10. It’s important to be aware of the terms of your current loan and the loans offered you when you negotiate a home refi, in order to get the best interest rate and term conditions possible.

There’s a lot to consider here. For more information, or to get the best answers to your questions, contact Paramount Equity today. We look forward to helping you.

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.