Berkshire Hathaway HomeServices Commonwealth Real Estate
Eleanor Osborn, Berkshire Hathaway HomeServices Commonwealth Real EstatePhone: (508) 654-1855
Email: [email protected]

How to refinance your mortgage

by Eleanor Osborn 05/29/2023

How to refinance your mortgage  featured image

If you’ve been paying off your home for a while, you may be interested in refinancing your mortgage. Mortgage refinancing gives homeowners the opportunity to tap into the equity they’ve built up and use it in a way to positively change loan conditions or invest back into the property itself. 

What is mortgage refinancing?

When you replace your old home loan by paying it off with a new one, you refinance your mortgage. Benefits include switching insurance rates (Example: from an adjustable rate to a fixed rate), shorten the term of the loan or even decrease the loan interest rate.   

In addition to home improvements, with cash out refinance, you can turn your built-up equity into cash. 

Find out how much equity you have in your home

Speaking with your mortgage lender, you can check how much equity you’ve built up on your home. This amount is made of the money you’ve paid back towards the balance of the property. 

For example, if the value of your home is $400,000, and you owe $300,000, you would have $100,000 of equity. 

Prepare your documents and apply

Once you’re ready for a mortgage refinance, you’ll need to gather documents to apply. These documents include, but are not limited to: 

  • Tax statements. 
  • Salary info.
  • Copy of homeowners insurance policy. 
  • Etc. 

Once all needed signatures and loan conditions are met, you’re given a cooling-off period of 3 days to retract your mortgage refinance request. In this case, you would just continue making your normal monthly payments on your original mortgage. 

Refinancing your mortgage is a huge step, so consider taking your time to weigh out the pros and cons.



About the Author
Author

Eleanor Osborn

Your resource for residential real estate

Thank you for visiting my website!  Here you can search properties on line (MLS info), sign up for daily market updates (Email Alerts), find out what your present home is worth (Home Valuation), what your payment would be for a particular home (Mortgage Calculator) or obtain useful information on schools, communities, and just about anything pertaining to real estate (Helpful Links). The tabs put info at your fingertips, but always feel free to contact me for additional help with a personal touch. I'm here for you: Consider Me Your Resource for Everything Real Estate!