Frequently Asked Questions

Buying a home can be a stressful prospect, from selecting a neighborhood to finding the right house and making an offer. But once you have a mortgage, the work isn't done. Smart homeowners keep track of interest rates and compare them to their existing mortgages, making sure to take advantage of opportunities to refinance and, possibly, save money. Below are some answers to some of the most frequently asked questions related to mortgage loan refinancing.

When is the best time to refinance?

There is no set time when you should refinance. It truly is an art and not a science: Market conditions can affect your home's value, which can as a result affect the types of refinances are made available to you. Your current credit score and financial status (income, debt) also can impact whether it is wise to refinance. As a rule of thumb, it is wise to look into refinancing if interest rates appear to be lower than your existing loan, and if you have at least 20 percent equity in your home (you owe no more than 80 percent of your home's total value).

How can refinancing my loan help me?

Your mortgage is likely your largest personal expense each month. Depending on when you took out the loan, it is possible that current interest rates are much lower today. Lower interest rates, or even shortened loan terms, can help you pay off your mortgage faster or save money on interest and other charges. Your existing financial status, your home's value and other factors such as the type of mortgage you currently have will affect the types of refinancing proposals you receive, if any. Be sure to carefully read over your refinance proposal's Good Faith Estimate - understand the new loan's term, interest rate, monthly payment and any penalties or fees. If you have questions, ask them before taking out the loan.

What is Refinancez.com?

A service offered to homeowners across the nation, Refinancez.com helps match homeowners with respected lenders who offer a variety of refinance products. By filling out the informational form on this site, you will be matched with the lenders in your area that can best help you refinance your mortgage loan. These lenders process refinances each day and are prepared to create proposals based on your home's value, current market conditions and your income. By enlisting the services of Refinancez.com, you will be able to compare loan proposals from a variety of lenders, and ultimately select the best loan for you.

What about my second mortgage or home equity loan?

When considering refinancing, you should also look into the prospects related to home equity lines of credit, equity loans or second mortgages. These financial products are not identical to your first mortgage, but they are related because they impact the total equity you have in your home. Depending on your home's value, how much you owe and your current financial situation, you could find significant savings on interest by refinancing all of your home loans into a single mortgage. Consult your mortgage professional to find out your options.