Best Mortgage Refinance Companies in Hampton

FAQs

• 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.

• How does mortgage refinance work?

  The mortgage refinance process begins with choosing a broker and filling out loan application information. The process continues through underwriting and closing. The new mortgage is then used to pay off and close your original mortgage loan. This leaves you with a new loan and mortgage payment to manage each month.

• When should you refinance a mortgage?

  If your credit score has improved or mortgage interest rates have dropped, refinancing can potentially save you money. Other reasons to refinance your mortgage include getting a fixed rate instead of an adjustable one or getting a shorter loan term. An increase in your home’s value that can let you access more equity is another reason to refinance.

• How much does it cost to refinance a mortgage?

  The average cost to refinance a mortgage is $5,000. This amount varies, based on the state and county where the property is located and the loan amount. Common fees incurred when refinancing a mortgage include:
  

  • Appraisal fee
  • Broker’s fee
  • Credit check fee
  • Loan application fee
  • Recording fee
  • Title search and insurance fee

• How soon can you refinance a mortgage?

  Some lenders make borrowers wait a minimum of six months before accepting a new mortgage refinancing application. However, when that happens, borrowers can check with other lenders to find one that doesn’t require a wait before refinancing. A mortgage refinance broker can guide you to lenders that allow immediate refinancing.

• How long does it take to refinance a mortgage?

  The average amount of time it takes to refinance a mortgage is 45 days. In some cases, it may be possible to get it done faster. There also may be times when it takes longer to get a mortgage refinanced.

• What is the average closing cost to refinance a mortgage?

  The average closing cost when refinancing a mortgage is $4,345. Closing costs may be much higher or lower depending on the amount of money borrowed. If you see an ad that says there are no closing costs, the costs are factored in elsewhere in the terms of the loan.

• How often can you refinance a mortgage?

  You can refinance a mortgage as often as you like, however, if you refinance frequently, it can cost more in fees than you save on interest. Some reasons for refinancing repeatedly include a sharp drop in interest rates or going through a life event, such as a divorce.

• When is it worth it to refinance a mortgage?

  It’s worth it to refinance when interest rates drop and refinancing will save you money. It also may be worth refinancing if you need to access some of your home’s equity to cover other expenses. Refinancing may be worthwhile if you're switching from a variable to a fixed rate mortgage.

• Can you refinance a mortgage with no closing costs?

  You can refinance a mortgage without paying closing costs at the time. However, those costs are still owed and are factored in elsewhere in the financing. Lenders either add the costs to the principal owed or increase the interest rate on your refinanced mortgage loan.

• Can you refinance a home equity loan into a mortgage?

  You can refinance a home equity loan into a mortgage in some situations. You have to have excellent credit to do this. Additionally, you must have enough equity in your home to qualify for a new mortgage that pays off the existing mortgage and your home equity loan.

• Can you refinance a mortgage without a job?

  In some situations, you can refinance your mortgage if you don't have a job. It depends on the lender, because some will allow it and others won’t. A qualified mortgage refinance broker can help connect you with lenders that consider your situation. You have to submit documentation about your unemployment and the income you have.

• Can you refinance a mortgage with bad credit?

  It’s possible to refinance a mortgage if you have bad credit. If your payment record with your current lender is good, you can discuss refinancing with that lender. You may also be able to refinance a mortgage by going through a government-backed lender, such as the USDA or FHA.

• Can you refinance a second mortgage?

  It’s possible to refinance a second mortgage. If your credit score improves or interest rates drop, refinancing a second mortgage may save you money. Either of these situations can provide a way for you to get a lower interest rate. Refinancing a second mortgage can also sometimes shorten your loan repayment period.

• Can you refinance a first mortgage and not a second?

  You can refinance your first mortgage and not the second one, but it can be difficult. You have to get the lender of your second mortgage to agree to the refinancing. The process is called resubordination, and some home equity lenders won’t agree. Additionally, lenders typically charge extra fees to resubordinate a loan.

• How often should you refinance your mortgage?

  There is no recommended frequency for refinancing a mortgage. How often you should refinance is determined by when it will save you money. If you can get better terms on your mortgage by refinancing, then it’s a good time to take action.
  
  

• What should you expect when refinancing a mortgage?

  When refinancing a mortgage, expect to answer a lot of questions and provide documentation to back up your answers. You'll may also pay fees and closing costs of around $5,000. Additionally, expect to start over in terms of building home equity, because refinancing takes the amortization process back to the beginning.