What Is A Refinance?
A mortgage refinance is the replacement of your existing mortgage with a new loan that may have different or more favorable terms, such as a shorter repayment term, lower monthly payments, or a lower interest rate.
Refinancing is a term that intimidates some homeowners, but don’t worry — the HMAC Team Cal Point Mortgage team is here to educate you, and provide the necessary support so you can meet your financial goals. Refinancing often results in a more favorable financial situation.
What Are The Benefits Of Refinancing?
You can refinance your home for a number of reasons, most of which typically result in a more favorable financial situation. Some of these include:
- Obtaining a lower interest rate to reduce monthly payments and save money.
- Changing the term on a mortgage (for example, from 30 years to 15 years). Shortening your term may help you avoid penalty clauses if you plan to pay off your loan early.
- Consolidating multiple debts into one easy-to-manage loan.
- Converting your existing mortgage from an adjustable rate mortgage into a fixed rate mortgage with fixed monthly payments.
- Converting multiple mortgages into one mortgage.
- Freeing up cash that you can use to pay off debt and make special purchases. This is called a cash-out refinance. The purpose of this type of loan is to extract equity from your home.
How Do I Refinance My Mortgage?
The process for refinancing your mortgage will likely be similar to the steps you went through to acquire your current loan. HMAC Team Cal Point Mortgage will look at your income, credit score and the value of your property. If refinancing your home sounds like something that fits with your homeownership goals, then finding the right type of loan is the next step.
What Are My Refinance Program Options?
If refinancing your home sounds like something that fits with your homeownership goals, then finding the right type of loan is the next step.
Here Is What You Will Need
- Proof of income
Find and make copies of your pay stubs for the past few months. If you’re self-employed, profit and loss statements may be required.
- Tax information
Gather your W-2s, 1099s, and tax returns for the past two years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information.
- Credit details
We’ll perform a credit check when you apply.
- Debt documentation
You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans, and any other debts.