Common Refinancing FAQ’s by the Borrowers
When applying for refinancing, people have different questions. Whether they should choose the refinancing option, how much risk is involved in refinancing, what should be the credit score for refinancing, etc. However, we have come up with a set of common FAQs for refinancing.
Will I save money with Refinancing?
Refinancing may save you money when the current interest rates are lower than your mortgage rate. Reduction in interest rates and savings are one part. To assess the benefits of refinancing, see if the savings generated from the refinancing is enough to cover the closing cost. The calculation may turn complicated, but our loan officers at Drew Mortgage Associates will help you with the right guidance.
What will be the Interest Rate? Will it be the same as mentioned in the ad?
The interest rate that lenders offer to the borrowers depends on a lot of factors. Parameters such as credit score, your financial or loan history, loan amount are the influencers for the interest rate. However, if you qualify the mentioned terms and conditions, you may get the interest rate shown in the ad. You can approach a reliable mortgage lender in MA to know the interest rate.
What will be the loan term after Refinancing?
People often assume that they will have to start over again for a 30 years loan after refinancing. It differs from one the mortgage lender to another.
How much paperwork is involved in Refinancing?
The paperwork depends on your loan type. You cannot avoid the paperwork. Look at it from a lender’s point of view. Your mortgage lender will have to make sure that you can make the payments regularly. If it’s a streamline refinancing, there will be less paperwork required. At Drew Mortgage Associates, we help and guide you to make the paperwork easier for you.
The questions one would ask are endless. However, we have tried to cover the most common questions about refinancing. If you have more questions, reach out to our loan officers as they will answer your queries and will guide you through the process.
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