Best Mortgage Refinance Companies in Cranston, RI

FAQs

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• Are you required to have a real estate attorney when you refinance your mortgage in Cranston?

  Not really, but hiring an attorney in Cranston does have some benefits. They can help you avoid scams, protect your interests throughout the process, and simplify the refinancing procedure. Rhode Island laws only require you to have an attorney to conduct a title examination. These laws also allow you to choose any lender you want for your home purchase or refinance.

• How many years should pass before you can refinance a primary home granted with down payment assistance from the City of Cranston?

  You can refinance after five years. If you do so before this, you have to pay in full the downpayment assistance to the Cranston Department of Community Development. The same also happens if you sell or change the title to the property and no longer make it your primary home. Details about this matter can be directed to the department through its phone number at (401) 780-6240 and office location at 35 Sockanosset Crossroads Unit #6 Cranston, RI 02920.

• What can be the effect of getting a cash-out refinance in Cranston?

  A cash-out refinance most likely changes the terms of the mortgage. Some of these changes include an increase in the amount owed or the number of years to pay the whole mortgage. Another possible effect can be owing more than what is the value of the home, which can be detrimental to the borrower in Cranston if property prices fall.

• Is there a smart way of asking the refinancing interest rate from a lender in Cranston?

  A lender in Cranston must always ask about your credit profile before giving a refinancing interest rate. These lenders are doing you a great disservice if they give a definite answer without knowing such information. Additionally, you must supply all the information indicated below to be able to obtain an interest rate more or less accurate to your situation.

  • Borrower's or borrowers' names.
  • Applicable addresses.
  • Property address.
  • 2-year income or employment information.
  • Date of birth and social security information.
  • money in assets such as bank accounts

• How are homeowners in Cranston who want to refinance protected by the Rhode Island Home Loan Protection Act?

  Lenders in Cranston must follow certain guidelines when recommending a refinance. The new loan must have lower monthly payments, a beneficial change to the amortization schedule, and a final payout amount that exceeds the costs of refinancing. Additionally, an adjustable-rate loan must be changed to a fixed-rate one, and the interest rate must be lower with the new loan. Generally, the Rhode Island Home Loan Protection Act requires refinancing to be helpful to the financial needs of the homeowner or be a matter of court decision.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.

• How does mortgage refinance work?

  The mortgage refinance process begins with choosing a broker and filling out loan application information. The process continues through underwriting and closing. The new mortgage is then used to pay off and close your original mortgage loan. This leaves you with a new loan and mortgage payment to manage each month.

• When should you refinance a mortgage?

  If your credit score has improved or mortgage interest rates have dropped, refinancing can potentially save you money. Other reasons to refinance your mortgage include getting a fixed rate instead of an adjustable one or getting a shorter loan term. An increase in your home’s value that can let you access more equity is another reason to refinance.

• How much does it cost to refinance a mortgage?

  The average cost to refinance a mortgage is $5,000. This amount varies, based on the state and county where the property is located and the loan amount. Common fees incurred when refinancing a mortgage include:
  

  • Appraisal fee
  • Broker’s fee
  • Credit check fee
  • Loan application fee
  • Recording fee
  • Title search and insurance fee

• How soon can you refinance a mortgage?

  Some lenders make borrowers wait a minimum of six months before accepting a new mortgage refinancing application. However, when that happens, borrowers can check with other lenders to find one that doesn’t require a wait before refinancing. A mortgage refinance broker can guide you to lenders that allow immediate refinancing.

• How long does it take to refinance a mortgage?

  The average amount of time it takes to refinance a mortgage is 45 days. In some cases, it may be possible to get it done faster. There also may be times when it takes longer to get a mortgage refinanced.

• What is the average closing cost to refinance a mortgage?

  The average closing cost when refinancing a mortgage is $4,345. Closing costs may be much higher or lower depending on the amount of money borrowed. If you see an ad that says there are no closing costs, the costs are factored in elsewhere in the terms of the loan.

• How often can you refinance a mortgage?

  You can refinance a mortgage as often as you like, however, if you refinance frequently, it can cost more in fees than you save on interest. Some reasons for refinancing repeatedly include a sharp drop in interest rates or going through a life event, such as a divorce.

• When is it worth it to refinance a mortgage?

  It’s worth it to refinance when interest rates drop and refinancing will save you money. It also may be worth refinancing if you need to access some of your home’s equity to cover other expenses. Refinancing may be worthwhile if you're switching from a variable to a fixed rate mortgage.

• Can you refinance a mortgage with no closing costs?

  You can refinance a mortgage without paying closing costs at the time. However, those costs are still owed and are factored in elsewhere in the financing. Lenders either add the costs to the principal owed or increase the interest rate on your refinanced mortgage loan.

• Can you refinance a home equity loan into a mortgage?

  You can refinance a home equity loan into a mortgage in some situations. You have to have excellent credit to do this. Additionally, you must have enough equity in your home to qualify for a new mortgage that pays off the existing mortgage and your home equity loan.

• Can you refinance a mortgage without a job?

  In some situations, you can refinance your mortgage if you don't have a job. It depends on the lender, because some will allow it and others won’t. A qualified mortgage refinance broker can help connect you with lenders that consider your situation. You have to submit documentation about your unemployment and the income you have.

• Can you refinance a mortgage with bad credit?

  It’s possible to refinance a mortgage if you have bad credit. If your payment record with your current lender is good, you can discuss refinancing with that lender. You may also be able to refinance a mortgage by going through a government-backed lender, such as the USDA or FHA.

• Can you refinance a second mortgage?

  It’s possible to refinance a second mortgage. If your credit score improves or interest rates drop, refinancing a second mortgage may save you money. Either of these situations can provide a way for you to get a lower interest rate. Refinancing a second mortgage can also sometimes shorten your loan repayment period.

• Can you refinance a first mortgage and not a second?

  You can refinance your first mortgage and not the second one, but it can be difficult. You have to get the lender of your second mortgage to agree to the refinancing. The process is called resubordination, and some home equity lenders won’t agree. Additionally, lenders typically charge extra fees to resubordinate a loan.

• How often should you refinance your mortgage?

  There is no recommended frequency for refinancing a mortgage. How often you should refinance is determined by when it will save you money. If you can get better terms on your mortgage by refinancing, then it’s a good time to take action.
  
  

• What should you expect when refinancing a mortgage?

  When refinancing a mortgage, expect to answer a lot of questions and provide documentation to back up your answers. You'll may also pay fees and closing costs of around $5,000. Additionally, expect to start over in terms of building home equity, because refinancing takes the amortization process back to the beginning.