Refinance Guide

Wondering if you should refinance?
There are many reasons to consider a refinance with the most common being to shorten your term or lower your monthly payment. However, refinancing also allows you to take cash-out from the equity in your home or perhaps remove your mortgage insurance.

Step One: What’s your goal?

Determine what’s important to you in a refinance. To get the lowest rate, for example, you might have higher fees. Lowering your payment might involve lengthening your loan term. Paying off your loan more quickly might result in a higher mortgage payment monthly. There are many options, and our mortgage consultants can help guide you to the best possible options.

Step Two: Research Your Home’s Current Value

One of the biggest factors in refinancing is your home’s current value. Equity is defined as the difference between the current value of the property and how much you owe. The bigger the equity cushion, the better your refinancing options are likely to be. Since real estate values change all the time, you need to make an up-to-date estimate of your home’s value. Check out real estate websites for estimates of your property’s market value and also look at the recent sale prices of comparable properties nearby.

Step Three: Get started with your refinance

Use the online Refinance Application to get the ball rolling. Just click the button and answer some questions about your home and current financial situation and we’ll get to work on your application right away.

Step Four: Choose Your Loan Program

Most refinancing goals can be met with more than one program, and one of our knowledgeable mortgage consultants can help you determine the most appropriate program for your needs. We have many loan programs available and look forward to guiding you to the best one.

Step Five: Understand your fees and costs

Closing costs for a refinance can be a significant amount of money, and might even make the difference in determining whether or not refinancing is cost-effective. Red Oak Mortgage will provide you with a written Loan Estimate of all of the costs associated with your loan and show you how those costs impact you so that you can make an educated decision.

Step Six: Lock and Close

The final step is locking in your interest rate and closing the loan. Locking a rate can be done at any time during the refinance process, and since most refinance closings occur within 10 days of application at Red Oak Mortgage, you can take advantage of the better rates available for short-term locks.