Getting Started: Refinancing Your Mortgage

Have you been thinking about refinancing your loan? It could be the right thing to do. Here are a few suggestions to get you started.

Is it the right time to refinance your mortgage?

Talk with your lender and run the numbers. Get started with our refinance calculator to get an idea of how your monthly payment could change and whether you’ll pay more or less total interest over the life of your new loan.

• 7 Reasons You Shouldn’t Refinance Your Mortgage
• Turned Down for Refinancing? What Now?
• Home Inspections and Appraisals: An Inside Look
• Can I refinance my VA Loan?

How can you get the best refinancing rate?

You can get the best rate on refinancing in the same way you get the best rate on a primary mortgage. Work to keep your credit score high, keep your debt to income ratio in mind, and know what can be negotiated and what can’t.

• Can You Shop Around for a Mortgage?
• Your Road to Better Credit and Qualifying for a Mortgage

What to do before calling your mortgage broker, credit union, or bank

To ensure you’ll get the best deal on your refinance, make sure you have all your ducks in a row. Know your current credit score, consider your debt to income ratio, and look at comparables in your neighborhood so you have an idea of what your home is worth.

• 5 Questions to Ask Before Refinancing Your Home
• Do You Always Pay to Refinance?  
• Know Your Interest Rate, Know the Market, and Know When It Might Be Time to Refinance

Who do you call first?

Your mortgage broker or bank. Learning what’s available to you is a great first step.

• The First Rule of Closing Costs is Negotiate, Negotiate, Negotiate
• 8 Questions to Ask Your Mortgage Lender

Can you refinance your mortgage if you're underwater?

Maybe. The first step is to talk to your lender. If you’re at risk of foreclosure, they may be interested in refinancing to terms that you can pay, especially if you aren’t behind on your mortgage payments. If your loan is backed by Fannie Mae or Freddie Mac, the FHA, the VA, or the USDA (in some states), you may also be eligible for refinancing on an underwater mortgage.

• Do You Qualify for a HARP Loan?
• Can You Move if You're Underwater on Your Mortgage?
• How To: Negotiate a Short Sale with Your Lender 

Ready to get started? Check out all of our posts about refinancing to learn more.

Have more questions? Ask us directly on social media!