If you have a home loan, you must be aware of the concept of home refinancing. It is the practice of switching to other home loan options so as to save money, consolidate debts, attain more flexibility, etc. Over the past decade, the increased availability of the data pertaining to loans, lenders, and their terms has significantly increased the popularity of home refinancing. This knowledge is not enough, though; you must be aware of the latest changes in the available options. This blog serves as a basic 2019 guide to refinancing your home.
It is common for borrowers to move from high-interest-rate mortgages to low-interest-rate ones. For instance, if you got a 30-year mortgage of $600,000 at 4.5% interest, you can save $210 every month by refinancing to a home loan with a 3.9% interest rate.
Overview of the Refinancing Process
The process of home refinancing is quite similar to your first-time loan process. To select the home loan option of your choice, you will work with a loan officer and a lender to submit your loan application. In this application, all necessary financial documents showing your income, assets, employment, and other information will have to be included so all your data can be verified.
As the final step, you’ll have to attend the closing, in which you’ll be signing your official home loan documents, finalizing the refinancing and paying the costs required for closing.
One of the most critical aspects related to home refinancing is gathering the documents. The refinancing process can be made faster and efficient if you take the time to collate and compile all the documents well before time. You should start gathering evidence of tax filings, bank statements, and W-2s early on.
This was some basic information that this 2019 guide to refinancing your home could provide you regarding the refinancing process. If you wish to learn more about refinancing.
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