Refinancing your mortgage can be a smart financial move, but it’s essential to understand when and how to do it to maximize benefits. Here’s a guide to help you navigate the refinancing process.
1. Determine Your Goals Identify why you want to refinance. Common reasons include lowering your interest rate, reducing monthly payments, switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or cashing out equity. Knowing your goals will help you choose the right refinancing option. **With the rise of prime rates/credit card rates a refinance may be strategic to minimize the higher rates of these revolving accounts.
2. Check Your Credit Score A higher credit score can secure better refinancing terms. Review your credit report and address any discrepancies before applying. Paying down debt and avoiding new credit inquiries can also improve your score. **Many loans allow for lower scores, we can also assist with credit improvement.
3. Consult with Active Lending Group At Active Lending Group, we are dedicated to providing you with the best mortgage rates and terms. Contact us directly to discuss your refinancing options. Our team, led by Tiffany Nyiri, will work with you to find the most favorable terms tailored to your financial situation.
4. Calculate Costs and Savings Refinancing comes with costs such as application fees, appraisal fees, and closing costs. Calculate whether the long-term savings outweigh these expenses. Give us a call directly to estimate your potential savings and break-even point.
5. Gather Necessary Documentation Prepare to provide financial documents, including tax returns, pay stubs, bank statements, and details of your current mortgage. Having these ready can speed up the application process.**Some loans do not require traditional documentation, please reach out to see what is needed for your specific scenario.
6. Apply for Refinancing Submit your application to us at Active Lending Group. We will review your documents, order an appraisal, and evaluate your eligibility. Be responsive to any additional information requests to keep the process moving smoothly.
7. Close the New Loan Once approved, you’ll go through the closing process. Review the final terms, sign the necessary paperwork, and pay any closing costs. Your new loan will pay off the existing mortgage, and you’ll start making payments on the refinanced loan.
At Active Lending Group, we are dedicated to helping homeowners in Corona, Riverside County, and surrounding California areas make informed decisions about refinancing. Contact us to learn how we can assist you in achieving your financial goals through refinancing.