Best Mortgage Refinance Companies in Hampton

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.
  

• When should you contemplate the idea of refinancing to an adjustable-rate mortgage in Hampton, and when should you avoid considering it?

  If obtaining a lower interest rate quickly is your priority, or if you're planning to sell within the next five years, believe that interest rates will decrease, or expect an increase in your income, it's advisable to think about switching to an adjustable-rate mortgage in Hampton. On the contrary, if your goal is to pay off your mortgage ahead of schedule, you foresee a rise in interest rates, or your income is inconsistent, it's wise to steer clear of adjustable-rate mortgages.

• What are the criteria that need to be met to qualify for refinancing to an adjustable-rate mortgage in Hampton?

  Criteria for refinancing to an adjustable-rate mortgage in Hampton vary among lenders, but generally require homeowners to meet the following requirements:

  • Possess a minimum of 20% equity in their home.
  • Maintain a credit score of 620 or above. Individuals with somewhat lower credit scores might still meet the requirements, though this is subject to the lender's discretion.
  • Have owned the property for a minimum of six months. However, some lenders might not impose any waiting period.
  • Maintain a debt-to-income ratio that is below 50%.

• In what ways does a RefiNow program distinguish itself from conventional mortgages in Hampton?

  Traditional refinancing in Hampton often involves upfront costs like appraisal and refinancing fees, which can be a hurdle for low-income homeowners. The advantages of refinancing in traditional cases depend on the borrower's circumstances and eligibility. While homeowners might aim to save through refinancing, success isn't ensured. RefiNow tackles these issues tied to traditional refinancing by eliminating upfront fees, making it more accessible to a broader range of homeowners. Additionally, it assures financial benefits through lower mortgage payments and interest rates.

• Is it possible to revoke your refinance loan in Hampton?

  Refinances for primary residences in Hampton have a three-day rescission period, during which the borrower can cancel the loan within three business days, excluding the closing day. This timeframe cannot be bypassed. As a result, signed papers and funds are held securely in an escrow account until the three-day rescission period ends. Only after this period does the loan receive actual funding. The closing disclosure will show a closing date (finalizing paperwork) and a disbursement date (releasing loan funds).

• What is a mortgage rate lock in Hampton?

  When engaging in mortgage renewal, refinancing, or application processes in Hampton, a mortgage rate lock allows you to secure a specific combination of an interest rate and points for a predetermined period, typically 10, 15, 30, 45, or 60 days. This lock safeguards you from abrupt interest rate hikes that might arise shortly before closing. Nevertheless, if rates decrease within this period, you might forfeit the opportunity to capitalize on the reduced rates.

• 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.