Best Mortgage Refinance Companies in Auburn, WA

Auburn, WA Mortgage Refinance FAQs

• How can you remove your private mortgage insurance (PMI) during mortgage refinancing in Auburn?

  You must have at least 20% home equity to remove your PMI when you refinance your mortgage in Auburn. Equity is the difference between your home’s value and your mortgage balance. So, if your home is valued at $300,000 and you still owe $210,000 on your mortgage, your equity is $90,000 or 30%. At this point, you can have your PMI removed from your new loan.

• When can you refinance an FHA loan in Auburn?

  You must have made over six months of monthly payments on your existing FHA loan to be able to refinance. While you can refinance this early, it is advisable to wait a while until you have built up some equity in your home or improved your credit score. A higher equity and credit score are particularly beneficial if you are refinancing into a conventional loan in Auburn. You can get a much lower interest rate and down payment.

• What should you consider when refinancing your Auburn home with an adjustable-rate mortgage?

  An adjustable-rate mortgage is attractive as it offers a low initial interest rate. However, the rate fluctuates after the initial period. You need to consider if you can manage a bigger monthly payment should the rate go up in the future. Also, adjustable-rate mortgages are generally beneficial for Auburn homeowners who don’t plan on keeping the house long-term. It allows them to enjoy the low initial interest rate and then sell the house when the rate hikes up.

• Can you cancel a refinancing loan contract in Auburn once you’ve signed it?

  Yes. Federal law gives borrowers the right to rescission. This right gives you three days to cancel the loan from the date the contract was signed. The Auburn lender will wait for this period to pass before funding the loan. The three-day count includes Saturdays and excludes holidays and Sundays.

• How can a debt consolidation refinancing loan help you minimize your debts in Auburn?

  Debt consolidation refinance works by paying off your high-rate debts with a new mortgage that has a low interest rate. For example, your existing mortgage in Auburn has a 7% interest rate, and your credit card debt has a 20% interest rate. You can get a refinancing loan with a 3% interest rate and then use the funds to pay off both debts. Funds are paid directly to your creditors. Debt consolidation refinancing has slightly lower rates than cash-out refinancing.