Refinancing is Easier Than You Think

What is mortgage refinance?

Refinancing is the process of paying off your existing mortgage with a new mortgage. Typically, you refinance your mortgage to reduce your interest rate and monthly payment or change the length (or term) of your mortgage. You may also refinance to take cash out from your home's equity.

Glossary Terms

HARP Refinance
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-refinance' title='See the full definition of HARP Refinance'>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>
Home Equity
Home equity is the difference between the market value of a home and any outstanding mortgage balance(s). A homeowner with a $200,000 property and a... <a href='/glossary/what-is-home-equity' title='See the full definition of Home Equity'>read more</a>
Interest Rate
The percentage of a loan amount that it costs to borrow money. <a href='/glossary/what-is-interest-rate' title='See the full definition of Interest Rate'>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
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 Refinancing'>read more</a>

This guide covers the topic of how to refinance a mortgage in five simple steps. There are many reasons for refinancing a mortgage -- the most common being interest rate reduction, lowering payments, converting adjustable loans to fixed loans, cashing out home equity, payoff acceleration and dropping mortgage insurance coverage. The first step, then, is determining whether refinancing a home will help the consumer achieve his or her goal.

Step One: Goal Determination

Refinancing can involve some compromise -- obtaining the lowest rate means paying higher fees, for example. Lowering the payment can involve stretching out the remaining balance over a longer term, which could mean higher interest expense over the life of the loan. Accelerating the mortgage payoff means accepting higher monthly payments. The first step, then, is determining the goal of the refinance and if it can be achieved under current market conditions. For example, if a homeowner wishes to obtain a lower rate, he or she can compare the current rate to real-time rates from competing lenders with LendingTree's LoanExplorer tool.

Step Two: Lender Selection

There are several ways to find mortgage lenders, but the most efficient method is by obtaining quotes online. This allows the borrower to request and receive information quickly. That's vital because mortgage rates change continually as financial markets move. Quotes received hours apart may not be useful if bond prices are changing quickly. The homeowner should check pricing and then interview several lenders with competitive rates.

Step Three: Program Choice

Most refinancing goals can be met with more than one program, and a knowledgable loan professional can help borrowers winnow out the most appropriate program for their needs. For example, homeowners desiring smaller payments can achieve them by finding a lower interest rate, stretching out their remaining balance over a longer term or choosing an interest-only loan. The loan officer should assess the borrower's risk aversion, expected tenure in the home, and plans like retirement or starting a family.

Step Four: Refinance Application

Refinancing a mortgage involves a mortgage application. Today, most loan officers or processors interview applicants and complete the forms for them. Applicants should provide statements from bank and investment accounts, their most recent two pay stubs and W-2s (for salaried employees) or tax returns (for income from commissions, self-employment or investments). A mortgage underwriter (human or automatic) may request additional documents like divorce decrees, business licenses or letters explaining credit issues. Credit reports are pulled and unless the refinance is a streamline product, the property is appraised. The efficiency of the lender and experience of the loan officer are crucial, so borrowers should interview lenders and check their reputations. LendingTree provides ratings and reviews of lender partners to help customers find the right company for the job.

Step Five: Lock and Close

The final step is locking in a mortgage refinance rate and closing the loan. Locking a rate can be done at any time during the refinance process. Until the interest rate is locked, borrowers are said to be "floating" their mortgages. Once a rate is locked, it is guaranteed until the lock expires -- unless there are "material" changes to the application, such as the borrower choosing a different program or the home appraising for less than expected. Borrowers who are floating their mortgages can check current mortgage rates before deciding to lock or continue floating. At closing, the final costs of the refinance are reconciled to the costs disclosed when the loan was locked. The actual costs cannot exceed the disclosed costs by more than allowed by law or the lender has to absorb the excess.

Closing a refinance differs from closing a purchase. If refinancing a primary residence, there is a three business day rescission period after the borrower signs the final documents. This is a cooling off period in which the borrower can back out of the refinance for any reason. Once that period expires, the refinance loan is funded and the old loan is paid off.

 

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Refinance rates now in Woodbridge, NJ[Change this]

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Home Price (Purchase)
When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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Home Value (Refinance)
This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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Down Payment
The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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Credit Score
Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.

30 Year Fixed

Interest Rate
3.375%
APR
3.444%
Monthly Payment
$885
Consumer Direct Mortgage, a division of FirstBank
30 Year Fixed
Interest Rate
3.375%
APR
3.444%
Monthly Payment
$885
(855) 997-1714 Contact
Consumer Direct Mortgage, a division of FirstBank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $0
Principal and Interest Payments $885
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $885
Lender Fees $1,724
Lender Credit $0
Total Closing Fees* $1,724
*Other 3rd party fees may apply
Consumer Direct Mortgage, a division of FirstBank
Email Lender

About the Lender

At Consumer Direct Mortgage, we know that each customer has specific needs, so we strive to meet those specific needs with a wide array of products, investment tools, mortgages and best of all quality service and individual attention. You are our priority and we know that superior service, delivering what was offered, coupled with the lowest overall cost is the way to keep you as a customer for life. In a lending environment where everyone is offering the same core products and programs, we know that we have to separate ourselves with an unwavering commitment to services and delivering the lowest overall total cost to close every day. Our sales and operations team is comprised of veteran Mortgage Professionals that are committed to this philosophy and understand what it takes to get the job done on time and at the agreed upon terms and conditions presented.
Consumer Direct Mortgage, a division of FirstBank
Email Lender Write a Review

Lender Reviews

Timely and professional

Yes, I recommend this lender

The process with Consumer Direct was pleasant and timely. Everything was laid out well and they had the best rate available for a 20 year refi. We are very happy with the outcome and would recommend them highly.

By: Stephanie (Post Falls, ID)

A Pleasant Experience

Yes, I recommend this lender

Although I'd initially dreaded the refinancing process and all that goes along with it (mainly gathering and submitting paperwork), I quickly found that Patrick Moore and his team are on top of the process. All my questions were timely answered, and submitting requested documents was super-easy via their online portal. Turns out, it was a pain-free, pleasant experience! I'll refer friends and family to Patrick and his team -- for sure.

By: Donna (Atlanta, GA)

excellent

Yes, I recommend this lender

Wonderful experience. Very impressed on how responsive Gigi and all staff was to help me. Thank you so much.

By: Anne (Norwalk, CT)
See All Reviews
eRates Mortgage
30 Year Fixed
Interest Rate
3.375%
APR
3.476%
Monthly Payment
$885
(844) 591-6648 Contact
eRates Mortgage
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 45 Days
Down Payment $0
Principal and Interest Payments $885
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $885
Lender Fees $2,500
Lender Credit $0
Total Closing Fees* $2,500
*Other 3rd party fees may apply
eRates Mortgage
Email Lender

About the Lender

eRates Mortgage is a Direct Lender that has been delivering superior rates and exceptional customer services for over twenty years.  We have simplified mortgage shopping to make the process easy, transparent and hassle free.  By operating completely online, we pass our cost savings on to you, the consumer.  Contact us today for your free, no obligation rate quote.
eRates Mortgage
Email Lender Write a Review

Lender Reviews

Huge Disappointment

Loan Officer was full of empty promises that sound fantastic. But where the rubber met the road they failed to execute. U/W asked for docs they didn't need, then asked for others 3x (no one knew why). Loan processor would send e-mails when we'd call for clarification (NEVER EVER called us back). The loan docs were late and wrong, cost us days - yes days - to fix it at our expense - think running around getting docs re-notarized, then Fedex'd, then, sent to find another error. When we approached management, we were assured it would be fixed the same day (we called at 10:30AM N Carolina) and it wasn't fixed. We were over 21 days late in closing/funding/recording. No one called to say, "wow - we really blew it - how can we make it up to you." I'd suggest you get an attorney and have them review everything and put cost protections in for your family or go to another company. I really wish I had used another company - the pain and aggravation are not worth whatever they offer you. It was too good to be true.

By: Mike (Palm Desert, CA)

They left us hanging on the day of closing

The Mortgage Originator was very approachable, and provided timely updates. No issues with him. The Sr Loan Processor was pretty good too, until the very last day of Closing. On the day of closing, the attorney office, and I, were waiting for the loan documents to be sent to the attorney, when she went quiet. No updates, no reply to phone calls - nothing. They left me hanging! The buyer was getting agitated, the attorney office could not extent their Closing time...we took a lot of heat from every direction - on top of the fact that we were not sure if something went with the loan. This happened on a Friday. And come Monday - still no updates on why the original Closing date was NOT honored - just our signature to extend the dates in the contract, and the documents were sent to attorney. Very very unprofessional of them to not keep me updated. I WILL NOT recommend them to a friend. The whole experience left a bitter taste at the end.

By: Anonymous (Cary, NC)

Best offer and superior services

Yes, I recommend this lender

I recently closed on a home purchase with eRates. I am still surprised by the rate and quality of service I received from the eRates. I initially started a loan application with another internet bank and was happy with the service I received from the mortgage banker. However, the APR stated in the true faith estimate was not consistent with what was initially discussed so I decided to switch banks. I started my loan application with Trevor with less than four weeks left prior to closing. My friends, real estate agent and even my attorney doubted that there is enough time to complete the mortgage process and advised me to push the closing date. When I spoke with Trevor Banville, he assured me that the process usually takes three weeks and I should be able to close without any problem. Amazingly, I got the credit approval from underwriter a day shy of one week with appraisal contingency. Once the appraisal was received, they were able to provide me with loan commitment letter within 24 hours. I am truly grateful to eRates, particularly Trevor and Linh Nguyen. I can’t say enough about the quality of service I received from Linh. Linh was always a phone call or an email away. He was swift with his responses no matter how late I emailed him. There was no question in my mind that Linh was my advocate. It was clearly evident that Linh knew the mortgage underwriting process well. He helped me gather all the necessary documents prior to submitting for underwriting. As such, there was very limited follow-up from the underwriter. I strongly recommend eRates. I am glad I did not pay close attention to the negative reviews and went with my intuition. Obviously, responsibilities do not rest with the mortgage company alone. As an applicant, you must stay on top of all the requests to make the process smooth. You can’t expect great service if you are not playing your part. By the way, not only did I receive superior services but I got great rate. When I mentioned the detail of the rate offer to the other mortgage companies I contacted, they were surprised about the deal and were not able to match the offer. Thank you Trevor, Linh and all the eRates personnel that made my dream a reality! I look forward to working with you in the future.

By: Abiscoa (Marlboro, NJ)
See All Reviews
Sebonic Financial
30 Year Fixed
Interest Rate
3.375%
APR
3.533%
Monthly Payment
$885
(844) 906-0508 Contact
Sebonic Financial
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $0
Principal and Interest Payments $885
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $885
Lender Fees $3,894
Lender Credit $0
Total Closing Fees* $3,894
*Other 3rd party fees may apply
Sebonic Financial
Email Lender

About the Lender

Sebonic Financial is a division of Cardinal Financial Company, a full service mortgage banking firm in operation since 1987.  The company is an approved seller/servicer for Fannie Mae, Freddie Mac and Ginnie Mae. Cardinal is also an approved lending institution for the Department of Housing and Urban Development/Federal Housing Administration and the Department of Veteran Affairs/Veterans Administration with FHAs Direct Endorsement and VA Automatic Lender Authority.  Cardinal is an authorized lender for the USDA/Rural Housing Program, the Pennsylvania Housing Finance Agency and the New Jersey Mortgage Housing Finance Agency.

 

Cardinal is licensed by the Departments of Banking in many states, mainly in the eastern and southeastern United States.  Its retail and wholesale divisions originate first mortgage loans for qualified borrowers.

Sebonic Financial
Email Lender Write a Review

Lender Reviews

Very Impressed

Yes, I recommend this lender

Requesting a loan with Sebonic was a very satisfying experience. I was contacted promptly and professionally, and the loan originator, Scott Galbraith, was very professional and friendly. Although I decided to not complete the loan, Sebonic did offer the best rates I saw out there, and provided a very professional service. I would recommend Sebonic for anyone seeking a mortgage.

By: Daniel (Boca Raton, FL)

Great rate, quick and easy close

Yes, I recommend this lender

I recently utilized Sebonic/Cardinal to close a no cash out Refinance. It was an extremely smooth process and I received a clear to close less than 2 weeks after my initial call in. It was very refreshing because I had originally been working with the old servicer (not Sebonic) of my loan and it was a painful process working with them. Then I went to two well-known online lenders (also not Sebonic) and the first kept adding new, unnecessary, conditions as the other conditions were cleared and kept delaying the clear to close. Full disclosure - In a previous life, I was a mortgage underwriter/AE for a number of years so I have background experience. The loan officer at the second lender played games right off the bat so I was done with them. He told me on the phone that I would be bringing nothing to the table. When I saw the Loan Estimate Disclosure, he had raised my loan amount and rolled higher closing costs (large origination) into the loan. Then, thankfully I found Sebonic through a Google search. I called and spoke with Kobie, my Loan Officer. He was very straight forward and up front regarding rates and fees and I felt comfortable with him on the phone, but I still wanted to see the Loan Estimate Disclosure. I received it and it matched what was said during our conversation. Fees were very reasonable, so much so that I was able to buy down the rate even more. I received the conditions list the next business day and the loan processor contacted me to set up a phone call to review and answer any questions I may have. I submitted all conditions online (relatively user friendly interface). There were some disclosures that needed to be signed/scanned as well. Communication via phone and email was very efficient. My loan processor Jervay was almost always available via phone, and if I left a message, he responded back promptly. Email replies were also prompt. I received a clear to close less than 2 weeks after my original conversation with the loan officer. I had been a tad worried with the 30 day lock, but obviously Sebonic knew that they can turn around some loans very efficiently. Also, everyone I was in contact with was very pleasant. I never felt like I was being pushed or ignored which I had experienced with the other lenders. Overall, A+ experience and I highly recommend.

By: RA (Chantilly, VA)

Sebonic was quick, inexpensive and easy

Yes, I recommend this lender

After receiving what I perceived as poor service at Quicken I walked away from them the week of the scheduled closing and went with Sebonic. As far as I am concerned it was a great decision as I closed quickly with a slightly better rate and lower closing costs. James Dawkins was assigned to push my loan through and he was very responsive and helpful. For the closing they sent a notary to my home and with a little help from James everything was done in about 45 minutes. This was probably about my 20th loan / refi and the first that was done almost entirely via the internet. The internet added a few twists to the process but overall it was painless.

By: Andrew (Pinehurst, NC)
See All Reviews

15 Year Fixed

Interest Rate
2.500%
APR
2.715%
Monthly Payment
$1,334
eRates Mortgage
15 Year Fixed
Interest Rate
2.500%
APR
2.715%
Monthly Payment
$1,334
(844) 591-6648 Contact
eRates Mortgage
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 45 Days
Down Payment $0
Principal and Interest Payments $1,334
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $1,334
Lender Fees $3,000
Lender Credit $0
Total Closing Fees* $3,000
*Other 3rd party fees may apply
eRates Mortgage
Email Lender

About the Lender

eRates Mortgage is a Direct Lender that has been delivering superior rates and exceptional customer services for over twenty years.  We have simplified mortgage shopping to make the process easy, transparent and hassle free.  By operating completely online, we pass our cost savings on to you, the consumer.  Contact us today for your free, no obligation rate quote.
eRates Mortgage
Email Lender Write a Review

Lender Reviews

Huge Disappointment

Loan Officer was full of empty promises that sound fantastic. But where the rubber met the road they failed to execute. U/W asked for docs they didn't need, then asked for others 3x (no one knew why). Loan processor would send e-mails when we'd call for clarification (NEVER EVER called us back). The loan docs were late and wrong, cost us days - yes days - to fix it at our expense - think running around getting docs re-notarized, then Fedex'd, then, sent to find another error. When we approached management, we were assured it would be fixed the same day (we called at 10:30AM N Carolina) and it wasn't fixed. We were over 21 days late in closing/funding/recording. No one called to say, "wow - we really blew it - how can we make it up to you." I'd suggest you get an attorney and have them review everything and put cost protections in for your family or go to another company. I really wish I had used another company - the pain and aggravation are not worth whatever they offer you. It was too good to be true.

By: Mike (Palm Desert, CA)

They left us hanging on the day of closing

The Mortgage Originator was very approachable, and provided timely updates. No issues with him. The Sr Loan Processor was pretty good too, until the very last day of Closing. On the day of closing, the attorney office, and I, were waiting for the loan documents to be sent to the attorney, when she went quiet. No updates, no reply to phone calls - nothing. They left me hanging! The buyer was getting agitated, the attorney office could not extent their Closing time...we took a lot of heat from every direction - on top of the fact that we were not sure if something went with the loan. This happened on a Friday. And come Monday - still no updates on why the original Closing date was NOT honored - just our signature to extend the dates in the contract, and the documents were sent to attorney. Very very unprofessional of them to not keep me updated. I WILL NOT recommend them to a friend. The whole experience left a bitter taste at the end.

By: Anonymous (Cary, NC)

Best offer and superior services

Yes, I recommend this lender

I recently closed on a home purchase with eRates. I am still surprised by the rate and quality of service I received from the eRates. I initially started a loan application with another internet bank and was happy with the service I received from the mortgage banker. However, the APR stated in the true faith estimate was not consistent with what was initially discussed so I decided to switch banks. I started my loan application with Trevor with less than four weeks left prior to closing. My friends, real estate agent and even my attorney doubted that there is enough time to complete the mortgage process and advised me to push the closing date. When I spoke with Trevor Banville, he assured me that the process usually takes three weeks and I should be able to close without any problem. Amazingly, I got the credit approval from underwriter a day shy of one week with appraisal contingency. Once the appraisal was received, they were able to provide me with loan commitment letter within 24 hours. I am truly grateful to eRates, particularly Trevor and Linh Nguyen. I can’t say enough about the quality of service I received from Linh. Linh was always a phone call or an email away. He was swift with his responses no matter how late I emailed him. There was no question in my mind that Linh was my advocate. It was clearly evident that Linh knew the mortgage underwriting process well. He helped me gather all the necessary documents prior to submitting for underwriting. As such, there was very limited follow-up from the underwriter. I strongly recommend eRates. I am glad I did not pay close attention to the negative reviews and went with my intuition. Obviously, responsibilities do not rest with the mortgage company alone. As an applicant, you must stay on top of all the requests to make the process smooth. You can’t expect great service if you are not playing your part. By the way, not only did I receive superior services but I got great rate. When I mentioned the detail of the rate offer to the other mortgage companies I contacted, they were surprised about the deal and were not able to match the offer. Thank you Trevor, Linh and all the eRates personnel that made my dream a reality! I look forward to working with you in the future.

By: Abiscoa (Marlboro, NJ)
See All Reviews
Consumer Direct Mortgage, a division of FirstBank
15 Year Fixed
Interest Rate
2.625%
APR
2.809%
Monthly Payment
$1,346
(855) 997-1714 Contact
Consumer Direct Mortgage, a division of FirstBank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $0
Principal and Interest Payments $1,346
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $1,346
Lender Fees $2,562
Lender Credit $0
Total Closing Fees* $2,562
*Other 3rd party fees may apply
Consumer Direct Mortgage, a division of FirstBank
Email Lender

About the Lender

At Consumer Direct Mortgage, we know that each customer has specific needs, so we strive to meet those specific needs with a wide array of products, investment tools, mortgages and best of all quality service and individual attention. You are our priority and we know that superior service, delivering what was offered, coupled with the lowest overall cost is the way to keep you as a customer for life. In a lending environment where everyone is offering the same core products and programs, we know that we have to separate ourselves with an unwavering commitment to services and delivering the lowest overall total cost to close every day. Our sales and operations team is comprised of veteran Mortgage Professionals that are committed to this philosophy and understand what it takes to get the job done on time and at the agreed upon terms and conditions presented.
Consumer Direct Mortgage, a division of FirstBank
Email Lender Write a Review

Lender Reviews

Timely and professional

Yes, I recommend this lender

The process with Consumer Direct was pleasant and timely. Everything was laid out well and they had the best rate available for a 20 year refi. We are very happy with the outcome and would recommend them highly.

By: Stephanie (Post Falls, ID)

A Pleasant Experience

Yes, I recommend this lender

Although I'd initially dreaded the refinancing process and all that goes along with it (mainly gathering and submitting paperwork), I quickly found that Patrick Moore and his team are on top of the process. All my questions were timely answered, and submitting requested documents was super-easy via their online portal. Turns out, it was a pain-free, pleasant experience! I'll refer friends and family to Patrick and his team -- for sure.

By: Donna (Atlanta, GA)

excellent

Yes, I recommend this lender

Wonderful experience. Very impressed on how responsive Gigi and all staff was to help me. Thank you so much.

By: Anne (Norwalk, CT)
See All Reviews

5/1 ARM

Interest Rate
2.500%
APR
3.310%
Monthly Payment
$791
Consumer Direct Mortgage, a division of FirstBank
5/1 ARM
Interest Rate
2.500%
APR
3.310%
Monthly Payment
$791
(855) 997-1714 Contact
Consumer Direct Mortgage, a division of FirstBank
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $0
Principal and Interest Payments $791
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $791
Lender Fees $2,742
Lender Credit $0
Total Closing Fees* $2,742
*Other 3rd party fees may apply
Consumer Direct Mortgage, a division of FirstBank
Email Lender

About the Lender

At Consumer Direct Mortgage, we know that each customer has specific needs, so we strive to meet those specific needs with a wide array of products, investment tools, mortgages and best of all quality service and individual attention. You are our priority and we know that superior service, delivering what was offered, coupled with the lowest overall cost is the way to keep you as a customer for life. In a lending environment where everyone is offering the same core products and programs, we know that we have to separate ourselves with an unwavering commitment to services and delivering the lowest overall total cost to close every day. Our sales and operations team is comprised of veteran Mortgage Professionals that are committed to this philosophy and understand what it takes to get the job done on time and at the agreed upon terms and conditions presented.
Consumer Direct Mortgage, a division of FirstBank
Email Lender Write a Review

Lender Reviews

Timely and professional

Yes, I recommend this lender

The process with Consumer Direct was pleasant and timely. Everything was laid out well and they had the best rate available for a 20 year refi. We are very happy with the outcome and would recommend them highly.

By: Stephanie (Post Falls, ID)

A Pleasant Experience

Yes, I recommend this lender

Although I'd initially dreaded the refinancing process and all that goes along with it (mainly gathering and submitting paperwork), I quickly found that Patrick Moore and his team are on top of the process. All my questions were timely answered, and submitting requested documents was super-easy via their online portal. Turns out, it was a pain-free, pleasant experience! I'll refer friends and family to Patrick and his team -- for sure.

By: Donna (Atlanta, GA)

excellent

Yes, I recommend this lender

Wonderful experience. Very impressed on how responsive Gigi and all staff was to help me. Thank you so much.

By: Anne (Norwalk, CT)
See All Reviews
Sebonic Financial
5/1 ARM
Interest Rate
2.500%
APR
3.372%
Monthly Payment
$791
(844) 906-0508 Contact
Sebonic Financial
Email Lender

Offer Details

Home Value $250,000
Requested Loan Amount $200,000
Lock Period 30 Days
Down Payment $0
Principal and Interest Payments $791
Estimated Mortgage Insurance Payments $0
Total Monthly Mortgage Payment $791
Lender Fees $4,269
Lender Credit $0
Total Closing Fees* $4,269
*Other 3rd party fees may apply
Sebonic Financial
Email Lender

About the Lender

Sebonic Financial is a division of Cardinal Financial Company, a full service mortgage banking firm in operation since 1987.  The company is an approved seller/servicer for Fannie Mae, Freddie Mac and Ginnie Mae. Cardinal is also an approved lending institution for the Department of Housing and Urban Development/Federal Housing Administration and the Department of Veteran Affairs/Veterans Administration with FHAs Direct Endorsement and VA Automatic Lender Authority.  Cardinal is an authorized lender for the USDA/Rural Housing Program, the Pennsylvania Housing Finance Agency and the New Jersey Mortgage Housing Finance Agency.

 

Cardinal is licensed by the Departments of Banking in many states, mainly in the eastern and southeastern United States.  Its retail and wholesale divisions originate first mortgage loans for qualified borrowers.

Sebonic Financial
Email Lender Write a Review

Lender Reviews

Very Impressed

Yes, I recommend this lender

Requesting a loan with Sebonic was a very satisfying experience. I was contacted promptly and professionally, and the loan originator, Scott Galbraith, was very professional and friendly. Although I decided to not complete the loan, Sebonic did offer the best rates I saw out there, and provided a very professional service. I would recommend Sebonic for anyone seeking a mortgage.

By: Daniel (Boca Raton, FL)

Great rate, quick and easy close

Yes, I recommend this lender

I recently utilized Sebonic/Cardinal to close a no cash out Refinance. It was an extremely smooth process and I received a clear to close less than 2 weeks after my initial call in. It was very refreshing because I had originally been working with the old servicer (not Sebonic) of my loan and it was a painful process working with them. Then I went to two well-known online lenders (also not Sebonic) and the first kept adding new, unnecessary, conditions as the other conditions were cleared and kept delaying the clear to close. Full disclosure - In a previous life, I was a mortgage underwriter/AE for a number of years so I have background experience. The loan officer at the second lender played games right off the bat so I was done with them. He told me on the phone that I would be bringing nothing to the table. When I saw the Loan Estimate Disclosure, he had raised my loan amount and rolled higher closing costs (large origination) into the loan. Then, thankfully I found Sebonic through a Google search. I called and spoke with Kobie, my Loan Officer. He was very straight forward and up front regarding rates and fees and I felt comfortable with him on the phone, but I still wanted to see the Loan Estimate Disclosure. I received it and it matched what was said during our conversation. Fees were very reasonable, so much so that I was able to buy down the rate even more. I received the conditions list the next business day and the loan processor contacted me to set up a phone call to review and answer any questions I may have. I submitted all conditions online (relatively user friendly interface). There were some disclosures that needed to be signed/scanned as well. Communication via phone and email was very efficient. My loan processor Jervay was almost always available via phone, and if I left a message, he responded back promptly. Email replies were also prompt. I received a clear to close less than 2 weeks after my original conversation with the loan officer. I had been a tad worried with the 30 day lock, but obviously Sebonic knew that they can turn around some loans very efficiently. Also, everyone I was in contact with was very pleasant. I never felt like I was being pushed or ignored which I had experienced with the other lenders. Overall, A+ experience and I highly recommend.

By: RA (Chantilly, VA)

Sebonic was quick, inexpensive and easy

Yes, I recommend this lender

After receiving what I perceived as poor service at Quicken I walked away from them the week of the scheduled closing and went with Sebonic. As far as I am concerned it was a great decision as I closed quickly with a slightly better rate and lower closing costs. James Dawkins was assigned to push my loan through and he was very responsive and helpful. For the closing they sent a notary to my home and with a little help from James everything was done in about 45 minutes. This was probably about my 20th loan / refi and the first that was done almost entirely via the internet. The internet added a few twists to the process but overall it was painless.

By: Andrew (Pinehurst, NC)
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Frequently Asked Questions

What is cash-out mortgage refinancing?

Borrowers who refi their mortgage often want to convert some of their equity in their home into cash. If you take out cash when you refinance, your new loan will be bigger than the loan you want to replace. The difference between the current pay-off amount and the new balance is paid to you in cash.

Can cash-out refinancing save you money?

Before refinancing for cash-out, make sure it's a good idea. Mortgage fees for cash-out refi's are higher than those of ordinary rate-and-term. If you can’t significantly lower your rate, then that may not be the best way to get your cash.

When does it pay to refinance a 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.

How do I “qualify” for a refinance loan?

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.

Is it time to refinance your 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.

How do you compare a cash-out refi to a home equity loan?

It depends on several factors – how the loan will be used, if the homeowner can improve the terms of their existing mortgage and calculating blended rates and refinance rates. Ultimately, home equity lines can often be set up for free, and home equity loans cost much less to set up than rate-and-term or cash-out refinances. Unless the homeowner can get refi offers that are significantly better than the existing home loan, taking a second mortgage (either home equity loan or line of credit) is a smarter choice.

How does cash-out refinancing work?

Cash-out refinancing is based on your home equity, which is the part of the home that you actually own. For example, if you have a home worth $250,000, and you owe $200,000 on the mortgage, you have $50,000 worth of equity in the home. If you refi the loan, that $50,000 is available for you to use (depending on your lender’s rules).

Should I refinance to an FHA mortgage?

You don’t need to have an FHA mortgage to refinance with FHA. And the fact that you can refi up to 97.5 percent of your home’s current value is a compelling reason to consider this option. For those with credit scores under 740 or loan-to-values above 80 percent, an FHA refi may be cheaper than Fannie Mae and Freddie Mac’s risk-based surcharges. But FHA also has its costs.

What are the top reasons to consider refinancing an ARM?

1. Your ARM is about to reset at a higher interest rate 2. You believe interest rates are going up long-term 
 3. You want the stability of a fixed rate 
 4. You want to refinance to another ARM 5. You’re staying put for a while 
 6. You’ve got higher-interest rate debt to consolidate 
 7. You want to cash out some of your home equity.