Best Mortgage Refinance Companies in Overland Park

Frequently Asked Questions

• 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.
  

• Can you refinance in Overland Park if you have a forgivable second mortgage under the Kansas First-time Homebuyer Program?

  Yes, under the statewide assistance program, you can refinance your mortgage in Overland Park. However, the fate of your second mortgage is determined by how quickly you refinance. If you stay in the same house for 10 years without refinancing, your loan will be fully forgiven. If you refinance before the 10-year period is up, you will be required to pay the unused portion of the loan.

• Why should you shop around when refinancing in Overland Park?

  Shopping around allows you to compare loan types and terms offered by different lenders to see which ones best suit your financial situation. Of course, staying with your current lender is an option. However, because your lender in Overland Park most likely does not own your mortgage, you will be required to sign new paperwork. It only serves your loan if it is held by Freddie Mac, Fannie Mae, or the Federal Housing Administration (FHA).

• If you want to refinance from an adjustable-rate loan to a fixed-rate loan in Overland Park, should you go with a 30-year or 15-year mortgage term?

  The best loan term for your fixed-rate refinance will be determined by your objectives and financial capabilities. A 15-year fixed mortgage allows you to pay down your Overland Park mortgage faster and build equity. You will also pay less interest than with a 30-year loan, but your monthly payments will be higher. A 30-year mortgage will accrue more interest over time, but it will have lower monthly payments.

• Does the fact that people in Overland Park frequently switch from adjustable-rate to fixed-rate mortgages imply that ARMs are bad?

  No. An adjustable-rate mortgage, like any other loan in Overland Park, has advantages and disadvantages. For one thing, because they begin with lower interest rates, ARMs are usually more affordable early in the loan's life. The disadvantage is that this rate adjusts over time, and if market rates suddenly rise, borrowers may struggle to keep up with larger payments. ARMs are not all bad. They simply carry a higher risk.

• How can you improve your credit score before refinancing your mortgage in Overland Park?

  Avoiding late payments can help you improve your credit score and get better terms on your Overland Park mortgage. You should also avoid making multiple credit applications and purchases that will cause your credit cards to be maxed out. If you want to close old credit cards, keep them open until the refinance is completed, because closing lines of credit can lower your credit score.

• 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.