Best Mortgage Refinance Companies in Wilmington

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 an existing mortgage with a home equity loan in Wilmington?

  In Wilmington, refinancing an existing mortgage using a home equity loan is not possible. A home equity loan functions as a secondary mortgage, enabling you to borrow against the equity in your home. However, it cannot serve as a replacement for your primary mortgage. If you are looking to refinance your current mortgage while also accessing the equity in your home, a viable option you may consider is a cash-out refinance.

• Can you refinance if your home equity in Wilmington has decreased?

  If the equity in your Wilmington home has decreased, your choices for securing a loan might be more limited. Loans such as home equity loans, HELOCs (home equity lines of credit), and cash-out refinances typically have restrictions on the amount you can borrow, which are determined by your home equity. In some cases, you might only be eligible for a smaller loan amount and not qualify for these loan options at all.

• Can you refinance a government-backed mortgage to a conventional loan in Wilmington?

  It is possible to switch from another type of loan, such as FHA, VA, or USDA, to a conventional loan in Wilmington, as long as you satisfy the lending requirements. For VA loan holders, a waiting period of 210 days or having made a minimum of six monthly payments (whichever is longer) might be necessary. If you possess a USDA loan, you might need to wait until your home equity reaches a minimum of 3% before being qualified.

• Are there prepayment penalties for refinancing in Wilmington?

  In Wilmington, prepayment penalties are not allowed for home loans secured by first mortgages of $100,000 or lower. For loans exceeding this amount, prepayment terms can be mutually agreed upon by the lender and borrower. If the loan agreement does not specify prepayment rights, borrowers can repay the loan without incurring penalties.

• Can you use the same lender for mortgage refinancing in Wilmington?

  In Wilmington, you have the option to refinance with the same lender who originally granted you the loan. However, note that your mortgage lender refers to the institution that initially provided your loan, which might not be the same entity that currently manages your loan. Some mortgage administrators do not initiate their own loans, so you must ensure that you are communicating with the right institution to address your refinancing needs.

• 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.