Facebook Blog | Wondering about the refinance process? Credit Union | MA

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Wondering about the refinance process? Credit Union | MA 06/06/2016

Have you been wondering about the refinance process? The benefits? The items needed? How to get started? We'll walk you through the answers to these questions below.

When you refinance your mortgage, you are closing your existing mortgage and opening a new one. The interest rate and term will most likely be different than your original loan, which in turn will likely change your monthly payment amount. The process of refinancing is very similar to the process for your original loan and your lender will consider your income, debt, credit score and overall financial situation like a lender did with your original loan.

Why would you refinance?

  1. A lower rate on your new mortgage will result in a lower monthly payment and a long-term savings over the life of your new mortgage.

  2. If you extend the term of your mortgage, your monthly payment could be significantly lowered.

  3. If you shorten the term of your mortgage, you will build equity in your home faster.

  4. If you move from an Adjustable Rate Mortgage to a Fixed Rate Mortgage, you will have payment stability and security.

  5. If you already have substantial equity in your home, you can take cash back from the equity in your home, putting cash in your pocket.

What is needed to refinance?

  1. Most current W2 form

  2. Copy of two most-recent pay stubs

  3. Most recent statements for checking and savings accounts

  4. Current mortgage statement

  5. Copy of homeowners insurance policy

What do I need to do to get started?

  1. Research and choose a trusted lender

  2. Determine the best rate and term for you individual situation

  3. Fill out an application and provide requested documentation to your lender

 

If you are considering refinancing, contact our lending department today to discuss your personal situation and evaluate if refinancing your mortgage is right for you.

Al Zuckerman, Mortgage Specialist: 781-433-2900 ext. 289

Ed Harrington, Mortgage Specialist: 781-433-2900 ext. 288