HOME REFINANCING

Life changes &
so can your loan

A lot has changed since you bought your home. Interest rates vary, your equity increases and your financial priorities shift. Refinancing with a new loan and terms is a smart move that your Loan Officer can help explain.

Lower Payments

Lowering your interest rate can lower your monthly mortgage payment. You'll have more freedom to save or spend with a smaller bill. The choice is yours.

Shorter Payment Terms

If you have more room in your budget, you might want to pay off your mortgage faster or build equity quicker. By refinancing to shorten the term of your loan, your payments will increase. You'll also pay less in interest.

Cash-out on your Equity

Your monthly payments increase your equity over time. A cash-out refinance allows you to exchange that equity for cash without a tax penalty.
**Consult a tax professional for more information.

Questions to Ask Before Refinancing

What are your financial goals?

Refinancing can be a good option if your goals are to lower your payments or shorten the length of your loan. You don’t have to wait for low-interest rates to achieve these goals. Reviewing your goals with your Loan Officer is an important step. They will help you determine if refinancing is the right solution for you.

Is your credit score healthy?

A higher credit score generally results in a lower interest rate. A better score will put you in a better position for refinancing, but your credit is only a piece of the puzzle. It’s essential to review the whole picture with your Loan Officer.

Do you plan to move soon?

Refinancing is a long-term solution, meaning it can take years to see a real difference in your budget. This is a better solution if you plan to stay in your home to enjoy the savings.

Are you ready to remodel your home?

Investing in the improvement of your home is a great reason to consider a cash-out refinance. Maintaining and remodeling can increase the value of your home. Your Real Estate Agent is an excellent resource for this. Some examples are finishing your basement, remodeling your bathroom, or replacing your gutters.

Your Loan Officer will review your financial information and determine if refinancing is the best option.

You will submit a loan application.

Your Loan Officer will gather your financial information, loan pre-qualification and provide the initial disclosures based on your loan terms.

This process will also include:

Ordering the appraisal; estimating the value of the home
Ordering/updating your credit report
Submitting your loan to Underwriting for review
Conditionally approving your loan (additional documentation might be requested)
Underwriting approval on all acceptable documents

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign, and return the paperwork a minimum of three days prior to your scheduled closing date.
Your Loan Officer or team member will tell you the amount of money you need to close on your home.

What happens on Closing Day:

While Prestige Home Mortgage services many of our loans, it is possible servicing will be transferred. You will be mailed a notification that designates your mortgage servicer. If you have any questions, you can always contact (800)960-7107.

Learn more about home financing

Renovation and Construction

Purchasing

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