Best Mortgage Refinance Companies in Boston

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.
  

• Does the act of changing an adjustable-rate mortgage to a fixed-rate mortgage or utilizing the home equity for debt consolidation lead to a rise in the rate and payment for homeowners in Boston?

  Yes, both types of mortgage refinancing lead to an increase in rates and payments for homeowners in Boston. Nevertheless, opting to transform an adjustable-rate mortgage into a fixed-rate variant offers a sense of reassurance, as it removes the possibility of rate hikes. Using the equity of a home to consolidate debt not only aids in reducing monthly expenses but also eliminates monthly payments.

• Is the presence of an attorney mandated by Massachusetts law during the mortgage refinance closing process in Boston?

  Yes. Massachusetts law stipulates that a Boston-based attorney must supervise both the mortgage refinance closing process and the actual closing. Legal professionals play a crucial role in addressing any title defects, managing the disbursement of mortgage funds, and officially recording essential documents. Additionally, they have the authority to release the existing mortgage lien.

• When should Boston homeowners consider refinancing their existing mortgages?

  For homeowners in Boston, it is advantageous to consider refinancing their mortgages when the prevailing mortgage rates are at least 2% lower than their current loan rates. Exploring this option could still be worthwhile, even if the difference in interest rates is just 1% or lower. Such a decrease has the potential to reduce the monthly mortgage payments. For a $100,000 loan that was taken at 8.5%, the payment would be approximately $770, excluding taxes and insurance. By lowering the rate to 7.5%, the payment would decrease to $700, leading to a monthly savings of $70.

• What is the difference between a home equity loan and a cash-out refinance in Boston?

  Using a home equity loan in Boston involves obtaining an additional loan that is placed above the original mortgage. On the other hand, a cash-out refinance involves replacing the initial mortgage with a new one that has a higher balance than the current loan. Typically, the interest rate on a cash-out refinance is lower than that of a home equity loan.

• What benefits does FHA Streamline refinancing offer to homeowners in Boston?

  FHA Streamline refinancing is designed to make the refinancing process for Boston homeowners with existing FHA-guaranteed mortgages quicker and easier than a traditional refinance. It typically requires less documentation and underwriting compared to a standard refinance. This means less paperwork and a potentially faster approval process.

• 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.