The Price You Pay: Refinancing
- 1 min
Thinking of taking advantage of interest rates or just perusing options to save you money? Whichever one, we’re glad you’ve decided to take the next step into replacing your existing loan with a newer loan that has better terms to improve your financial situation.
Specific advantages of refinancing
Refinancing lowers your interest rate
Refinancing changes your loan term
Refinancing offers the option of changing your loan type
Refinancing lowers your monthly mortgage payment
Now that the perks of refinancing are out of the way, we have some other logistics we need to discuss.
How much will this cost me?
We have to take the good with the bad to ensure a better financial situation in the long-run, right? Well, this is the nitty gritty part of refinancing that no one really talks about. There are some costs that come with refinancing. Transaction costs vary from state to state, but to be on the safe side you should budget 3-6 percent of the outstanding principal on the current loan in place. When it comes to other fees like appraisal fees, credit fees, lender fees or discount points, it’s good to brush up on your education of them but know they also vary. We’ve provided you with more insight on this here.
What’s the refinance process like?
Imagine your homebuying process, then remove a real estate agent and a down payment, and you’ll pretty much have your refinance process. Between the two, refinance is probably the easiest because you don’t have to find a home or involve as many people as you did with the home buying process.
"Our refinance with Atlantic Bay was a positive experience! Our mortgage banker was on top of everything, had excellent communication and made for a very smooth process. Thank you!"
If you’re looking for a lower monthly mortgage payment, refinancing could help you do that. Even once you have a home loan, the mortgage industry and loan process can still be confusing, especially if you’re looking to refinance your loan. Talk through any questions or concerns you have with your mortgage lender. They can help you decide what’s right for your financial situation, we’re here to help.