Best Mortgage Refinance Companies in Medford

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 should you not do when refinancing a mortgage in Medford?

  Avoid major changes in your job or become self-employed when refinancing your mortgage in Medford. You should also avoid adding to your obligations by making large purchases or falling behind on payments. Change your bank accounts, conceal your debts and liabilities from documentation, and do not co-sign loans. By following these guidelines, you can ensure a smooth refinancing process. Before making any major changes to your financial situation, consult with your mortgage advisor.

• How do you know if you are maximizing your refinance costs in Medford?

  You can reduce the cost of refinancing loans in Medford by calculating the break-even point, or how long it will take for your monthly savings to exceed the refinance cost. Closing costs and prepayment penalties can add up to several percent of your mortgage, so plan accordingly. Also, knowing how much equity you have in your home and its estimated market value can help you decide whether the cost is reasonable.

• What should you take into account in a Medford mortgage for future refinancing?

  Prepayment penalties are disclosed in mortgage disclosures and should be considered for future refinancing in Medford. Some lenders impose a prepayment penalty in the form of extra interest payments equal to six months' payments if a mortgage is paid off within the first three to five years. There are no-prepayment-penalty loans available, but mortgages with prepayment penalties offer benefits such as a lower interest rate or the ability to refinance without incurring closing fees.

• Can you refinance a jumbo mortgage in Medford?

  Given the larger loan amount, refinancing a jumbo mortgage in Medford might be more difficult than a conventional mortgage. Borrowers must adhere to strict qualifications, including credit scores of 660 or above, at least 20% home equity, over 80% loan-to-value ratio, and 43% or less debt-to-income ratio. Many lenders also require applicants to have no more than four current mortgages, no bankruptcy record within the past seven years, and sufficient resources to cover several months of mortgage payments.

• Is it worth it to refinance your mortgage in Medford as interest rates have dropped?

  It is recommended that you refinance your mortgage in Medford if you can get your interest rate reduced by 0.75 percentage points or more. However, a rate decrease alone is insufficient to justify a refinance. Consider other aspects of the mortgage, such as prepayment penalties and closing costs. If the remaining mortgage balance is manageable, a low-interest rate may be preferable.

• 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.