Refinancing your Mortgage at a Glance
Refinancing your mortgage is simply replacing your current mortgage with a new one. The new loan pays off the old loan, and you'll start making payments on the new loan. People refinance their mortgages for all sorts of reasons – including lowering their monthly payment, getting better refinance rates, taking cash out of their home, shortening their loan term, or a combination of the above.
LendingTree Can Help You Refinance
Just as you would shop around for your home, it's equally as important to shop around for your home loan – whether you're a first-time buyer or are looking to refinance your existing loan. At LendingTree, we make it easy by doing the shopping for you. By comparing lenders and having them compete for your business, you're certain to get the best rate possible on your mortgage refinance. The better your rate, the lower your payment will be and the more money you will save over the life of your loan.
Benefits of Refinancing:
- Lower your interest rate
- Lower your monthly payment
- Adjust your loan term
- Convert a variable rate to a fixed rate
- Take cash (equity) out of your home
- HARP Program
- The Home Affordable Refinance Program (HARP) was created by the federal government in April of 2009 to allow eligible homeowners with little home... <a href='/glossary/what-is-harp-program' title='See the full definition of HARP Program'>read more</a>
- Cash-Out Refinancing
- A refinance in which the new loan amount exceeds the total needed to pay off the existing mortgage. The difference goes to the borrower and can be... <a href='/glossary/what-is-cash-out-refinancing' title='See the full definition of Cash-Out Refinancing '>read more</a>
- Rate and Term Refinancing
- A mortgage refinance that replaces the existing mortgage with a new one but does not disburse cash to the borrower. Rate and term refinancing is... <a href='/glossary/what-is-rate-and-term-refinancing' title='See the full definition of Rate and Term Refinancing'>read more</a>
- Refinancing means replacing one loan with a new, better loan. Improving the terms of a loan can mean obtaining a lower interest rate, a lower monthly... <a href='/glossary/what-is-refinancing' title='See the full definition of Refinance'>read more</a>
Frequently Asked Questions›
- 5 Basic Steps To Refinancing
What are the basics steps to refinancing?
- 1. Determine if you should refinance
- Find a lender
- Choose a program
- Apply here
- Lock in your rate
- Getting The Best Rate On Your Jumbo Mortgage Refinance
How do I get the best rate on my jumbo mortgage refinance?
You’ll want to shop around. Find a good broker who not only knows where the programs are, but who also can tell you which lenders offer the best rates and are most likely to approve your application. Local real estate agents who list a lot of high-end homes who also know finances are also a good resource. Keep in mind, though, that a real estate agent’s main priority is that the mortgage gets approved and closed quickly. You can also look into a hybrid ARM improving your credit score in order to lower your loan’s interest rate.
- Refinancing Your Adjustable Rate Mortgage (ARM)
Is it time to refinance your adjustable rate mortgage (ARM)
As a rule of thumb, it’s worth considering a refinance if your new interest rate will be around 1.5 to 2 percent lower than your current rate. (Otherwise, fees may eat up any potential savings.) Compare your current rate with the posted rates offered by other lenders, but be sure to ask about the index and margin -- if they are different from those of your existing ARM, you may be comparing apples and oranges.
- When To Refinance Your Mortgage
When does it pay to refinance your mortgage?
Any time you can get a no-cost refi with a lower interest rate, go for it – you have no break-even period, so the savings go straight to your bottom line. You can invest it, pay down your debts or accelerate your mortgage payoff.
- Qualifying for A Mortgage Refinance
How do I qualify for a mortgage refinance?
Three steps. Home Equity, and Credit Score.
Step 1: Home Equity: Property value should exceed the refinance amount
Step 2: Income: Total of refi payment plus other debts should be < 43% of gross income
Step 3: Credit: Credit score should exceed lender minimums (usually 620-660). Homeowners who don't meet these three guidelines should look for streamline programs, which are more flexible.
- Basics Of Cash-Out Refinancing
What are the basics of cash-out refinancing?
It is the process of taking out a new mortgage with a larger principal than your current mortgage. The difference in principal is paid to you as cash, which you can use for almost any purpose, including debt consolidation.
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