Best Mortgage Refinance Companies in Auburn

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.
  

• How can you remove your private mortgage insurance (PMI) during mortgage refinancing in Auburn?

  You must have at least 20% home equity to remove your PMI when you refinance your mortgage in Auburn. Equity is the difference between your home’s value and your mortgage balance. So, if your home is valued at $300,000 and you still owe $210,000 on your mortgage, your equity is $90,000 or 30%. At this point, you can have your PMI removed from your new loan.

• When can you refinance an FHA loan in Auburn?

  You must have made over six months of monthly payments on your existing FHA loan to be able to refinance. While you can refinance this early, it is advisable to wait a while until you have built up some equity in your home or improved your credit score. A higher equity and credit score are particularly beneficial if you are refinancing into a conventional loan in Auburn. You can get a much lower interest rate and down payment.

• What should you consider when refinancing your Auburn home with an adjustable-rate mortgage?

  An adjustable-rate mortgage is attractive as it offers a low initial interest rate. However, the rate fluctuates after the initial period. You need to consider if you can manage a bigger monthly payment should the rate go up in the future. Also, adjustable-rate mortgages are generally beneficial for Auburn homeowners who don’t plan on keeping the house long-term. It allows them to enjoy the low initial interest rate and then sell the house when the rate hikes up.

• Can you cancel a refinancing loan contract in Auburn once you’ve signed it?

  Yes. Federal law gives borrowers the right to rescission. This right gives you three days to cancel the loan from the date the contract was signed. The Auburn lender will wait for this period to pass before funding the loan. The three-day count includes Saturdays and excludes holidays and Sundays.

• How can a debt consolidation refinancing loan help you minimize your debts in Auburn?

  Debt consolidation refinance works by paying off your high-rate debts with a new mortgage that has a low interest rate. For example, your existing mortgage in Auburn has a 7% interest rate, and your credit card debt has a 20% interest rate. You can get a refinancing loan with a 3% interest rate and then use the funds to pay off both debts. Funds are paid directly to your creditors. Debt consolidation refinancing has slightly lower rates than cash-out refinancing.

• 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.