Best Mortgage Refinance Companies in Lexington

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.
  

• How much does it cost to refinance an existing mortgage in Lexington?

  The usual expenses for closing on mortgage refinancing in Lexington and across the state vary between $2500 and $3500. Nevertheless, each deal is unique, and the expenses for refinancing will vary accordingly. These variations are influenced by multiple factors, including the loan amount, loan type, and cost of the property appraisal. In many cases, a significant portion of the closing costs can be rolled into the loan refinance, thus reducing the homeowner's upfront expenses.

• Can paying discount points lower the refinance interest rates of Lexington homeowners?

  Opting to pay discount points has the potential to reduce refinance interest rates and may enable homeowners in Lexington to access higher loan amounts. Nevertheless, if one plans to remain in the property for just a short period, such as a year or two, the monthly savings might not be able to recover the upfront cost of these discount points. Deciding whether it's prudent to pay points to secure a lower rate hinges on the homeowner's specific circumstances.

• How does credit score influence the interest rate that lenders offer to Lexington homeowners?

  Lexington homeowners with higher credit scores are eligible for reduced interest rates. The lender establishes the lowest acceptable credit score for refinancing, which can also be impacted by the loan category borrowers are seeking. For instance, a minimum score of 620 is necessary for a conventional refinance. In contrast, loans backed by the Federal Housing Administration can be accessible with a score as low as 580. To secure the most favorable rates, a borrower typically requires a credit score of 740 or higher.

• What is the average timeframe for completing a mortgage refinance in Lexington?

  Typically, it takes around 30 to 45 days on average to complete the origination, processing, and closure of a refinanced home loan in Lexington and other areas of Kentucky. The duration necessary to finalize a mortgage refinance can differ depending on the type of lender the borrower is working with, the complexity of the homeowner’s financial circumstances, and the current quantity of refinance applications being handled by the lender.

• What are the mortgage interest and refinance rates in Lexington?

  As of August 2023, the interest rates and APRs for various fixed-rate mortgages in Lexington are as follows: For a 30-year mortgage, the interest rate is 7.191% and the APR is 7.272%. If a homeowner opts for a 20-year mortgage, the interest rate stands at 7.066% with an APR of 7.168%. Moreover, a 15-year mortgage bears an interest rate of 6.093% along with an APR of 6.255%.

• 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.