Best Mortgage Refinance Companies in Durham

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.
  

• What factors lead people to consider mortgage refinancing in Durham?

  Securing a lower mortgage interest rate, which results in smaller monthly payments and significant interest savings, is one of the main reasons people refinance in Durham. Another incentive is a shorter loan term, which enables homeowners to quickly pay down their mortgages and build equity more quickly. Cash-out refinancing also provides access to home equity for consolidating debts or home improvements. Moreover, refinancing facilitates a change from an adjustable-rate mortgage to a fixed-rate mortgage, guaranteeing consistent monthly payments.

• What expenses are linked with mortgage refinancing in Durham?

  When refinancing a mortgage in Durham, several expenses arise:

  • Appraisal fees: To assess the property's current value, an appraisal is mandatory, entailing a fee.
  • Title insurance and search fees: Confirming a clean property title involves fees to check for liens and encumbrances.
  • Origination fees: Cover loan processing, usually proportional to the loan amount.
  • Prepayment penalties: Certain loans carry penalties if paid off prematurely.
  • Closing costs: Finalizing the mortgage incurs costs like taxes and recording and attorney fees.

• How does equity factor into refinancing in Durham?

  In Durham, a borrower must have a specific level of equity in their house to refinance. Generally, rate and term refinancing are allowed with a minimum of 5% equity (equivalent to 95% LTV). Opting for a cash-out refinance requires at least 20% equity, enabling equity withdrawal. It's possible to occasionally reduce equity when refinancing. In certain situations, you might use your equity to offset the closing costs tied to the refinance process.

• Is it possible to pursue mortgage refinancing with no closing costs in Durham?

  Yes. "No closing cost refinances" exist in Durham, allowing house refinancing without upfront closing payments. Nonetheless, although they offer initial savings, they might not always be the most economical option in the long run. Opting for no closing cost refinances involves accepting a higher interest rate to forego closing fees, which could result in an increase in your final mortgage payment.

• What are the important things to keep in mind before proceeding with mortgage refinancing in Durham?

  As you assess your present mortgage for potential refinancing in Durham, consider the initial cost of ending your current loan. Depending on your remaining loan term, this exit expense can range from 3% to 6% of your remaining principal. Refinancing necessitates a title search, a home appraisal, and application fees. Moreover, it involves a thorough credit check, which can affect your long-term credit score. Before investing effort in an appraisal and application, ensure refinancing aligns well with your circumstances.

• 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.