What is a mortgage refinance? In short, a mortgage refinance is the process of replacing your current mortgage with a new mortgage. Most mortgage refinances are done to meet a specific goal, whether it be to lower the interest rate, lower the mortgage payment, consolidate multiple loans into a single new long-term loan and many more reasons.

Borrowers often choose to refinance their mortgage when the interest-rate environment changes substantially, causing a potential to save on their mortgage payment or to reduce their mortgage term, allowing for a quicker payoff.

If a refinance is a consideration, you will want to review the current terms of your mortgage. Understand what you are paying each month, what your interest rate is, how long you’ve had your mortgage, what you will pay over the remaining life of your loan, if you are currently paying mortgage insurance and if any pre-payment penalties apply.

Tip: Send a current mortgage statement to me for a mortgage review! With your mortgage statement, I can go over everything with you, show you options and help you decide if a mortgage refinance makes sense according to your goal(s).

Examining Your Mortgage Refinance Options

Previously, you’ve discovered your perfect home and financed it with a loan term that made sense at the time. Since then, families grow, jobs and circumstances change, interest rates go up and down and other factors may result in the need to refinance your mortgage.

Whether you’ve been living in your home for a year or multiple decades, refinancing may be a smart move to address changing goals. There are multiple mortgage options available that you may or may not be aware of. In this section, we will go over many options available to you.

Cash-Out Refinance

If you’ve been researching home values recently and notice an increase in your home’s value, you will likely have equity in your home. With this equity, you may have the option of refinancing for more than what you owe on your current mortgage.

This type of refinance is a Cash-Out Refinance which allows you to pay off your old mortgage and receive additional cash transferred to you to use as you wish. Your old mortgage will reflect as paid on your credit report and a brand-new loan is begun with a new mortgage term including a new interest rate, monthly payment, and loan maturity date.

Note About Cash-Out Refinancing

If you need cash for home repairs or other large purchases, a refinancing loan that lets you draw on your home equity sounds like a no-brainer. Most homebuyers initially opt for a 30-year mortgage.

While it can significantly lower your monthly payments, refinancing with another 30-year loan can put you back where you started and increase the amount of interest you’ll ultimately pay. Consider asking for a shorter-term loan matching the time you had left on your original mortgage.

Have 24 years left? Ask me for a loan scenario for a 20-year refinance for a faster payoff or a customized 24-year refinance with 30-year interest rates so that you aren’t having to restart from the very beginning.

Rate and Term Refinance

The most popular refinancing type of loan. Rate-and-term refinancing occurs when the original loan is paid and replaced with a new loan agreement with limited to no cash out.

Rate-and-term mortgage refinancing is driven primarily by a drop in market interest rates in order to lower monthly mortgage payments. This can be contrasted with cash-out mortgage refinances which is driven by increasing home values by homeowners seeking to tap into their home equity.

Cash-In Refinance

A cash-in refinance is also considered a rate and term refinance (see above) where the borrower opts to pay down some portion of their loan along with changing the mortgage terms. The goal is typically to reduce the interest rate, reduce the loan term to pay off a home quicker or both.

Ready to get started? Simply complete this questionnaire. Choose the refinance option at the beginning and answer the questions from there. In just 60 seconds, you will have completed the questionnaire and I will be in touch to discuss your goals.

RefiNow™ – Fannie Mae Refinance

Fannie Mae introduced a new refinance mortgage option called RefiNow™ beginning June 5, 2021. Initially announced April 28 by the Federal Housing Finance Agency, RefiNow™ makes it easier for eligible homeowners earning at or below 80% area median income (AMI) to refinance to a lower interest rate and reduce their monthly mortgage payment.

Refi Possible™ – Freddie Mac Refinance

Refi Possible™, made available August 30^th, 2021, offers flexibilities to help borrowers take advantage of a low interest rate market by refinancing their mortgages and lowering their monthly mortgage payments, which will help them achieve greater housing stability and build generational wealth. This refinancing option, targeted toward low-to-moderate income borrowers, may be especially beneficial for borrowers who may not believe they qualify for refinancing due to their incomes.

RefiNow™ and Refi Possible™ Qualifying Factors Include:

A Fannie Mae or Freddie Mac backed mortgage secured by a 1-unit, principal residence.
RefiNow™: A current income at or below 80% of the area median income based on the location of your home.
Refi Possible™: A current income at or below 100% area median income (AMI).
A solid track record of mortgage payments. With Fannie Mae, you need to have made all payments on time in the past six months and no more than one 30-day late payment within the past year. Freddie Mac asks for all of that and that you have not had a 60-day or longer delinquency in the past 12 months.
A mortgage with a loan-to-value ratio up to 97%, a debt-to-income ratio of 65% or less, and a minimum 620 FICO score.
You will need to have owned your home for at least 12 months but not more than 10 years.

Note: Neither RefiNow or Refi Possible allow for cash-out refinances. A maximum of $250 cash back because of excess funds is allowed.

VA - Cash-Out Refinance

If you currently hold a VA Loan or are eligible to move to one, there are also several available refinance options.

The VA cash-out refinance is designed to help eligible veterans or their qualified family members to tap into the equity in their home. Whether the current mortgage loan is paid down or an increase in property value has occurred, the homeowner can take some of the equity to use for other purposes such as debt consolidation, home remodeling or to buyout someone who has a vested interested in the property.

VA - Rate and Term Refinance

A VA rate-term refinance is for a VA-eligible borrower who may be currently in a conventional or ARM loan, that wishes to move to a VA loan. This program offers the ability to finance up to 100% of the property’s value and does not require mortgage insurance.

VA - Interest Rate Reduction Refinance Loan (IRRRL)

If you have an existing VA-backed home loan and you want to reduce your monthly mortgage payments or make your payments more stable, an interest rate reduction refinance loan (IRRRL) may be right for you.

IRRRL is designed to help lower interest rates and change the overall terms of the loan such as moving from an ARM to a fixed rate. To qualify for a VA IRRRL, you must have an ongoing VA purchase loan. You cannot refinance a non-VA loan into a VA loan through VA streamline refinance.

FHA - Refinance Loan

There are various mortgage refinance programs available through the FHA (Federal Housing Administration) from fixed-rate to streamlined programs designed specifically for those holding a current FHA loan.

Even if you hold a conventional mortgage an FHA refinance may make sense with less stringent qualifications. The downside may be that FHA does require mortgage insurance, so you’ll need to factor those costs into your overall decision.

FHA - Streamline Refinance Loan

The FHA Streamline Refinance may be worth your consideration if you have a current FHA loan in good standing and are looking for a refinance program that can lower your interest rate and payment without the need for an appraisal. During your refinance, you may also opt for a 15-year term vs restarting a 30-year term which may come with reduced interest rates over the 30-year option.

One downside to an FHA Streamline Refinance is you will still have mortgage insurance (MIP). Consider a conventional refinance or other option to avoid mortgage insurance. Be sure to ask me for a comparison to help with the decision-making process.

Retirement Mortgage - Home Equity Conversion Mortgage (HECM / Reverse)

A retirement mortgage is available to homeowners who are 62 years of age or older and why I label it a retirement mortgage solution. The HECM option is a great way to convert your home’s equity into cash, only instead of making monthly payments to your lender, your lender sends you funds in a way that best suits your needs.

The HECM Retirement Mortgage is a very flexible loan product that can be utilized in a variety of ways for a variety of different types of borrowers. Use a HECM to relieve financial stress or as a financial planning tool.

Speak to a HECM mortgage professional today! Visit my HECM retirement mortgage page and fill out the contact form on the page to get started.

Top Reasons and Benefits to Refinancing

Before starting your refinance, consider your goals and reasons why you want to refinance your home loan. From the beginning, your goal will guide the mortgage refinancing process to tailor it to your specific needs.

Reduce the monthly payment. Are you noticing news headlines letting you know interest rates are on their way down? When you have a goal to lower your monthly payment, you can refinance and take advantage of these lower rates to lower your payments. Perhaps your goal has changed from paying your home off as fast as possible to a goal of getting the lowest possible payment due to financial hardship, this can be done with a refinance when there are favorable interest rates available. Going the other way is also possible by switching to a 15-year mortgage which may have reduced interest rates over the 30-year option.
Tap into your home’s equity. If you’ve built a decent amount of equity in your home, you may qualify to refinance and draw on that equity for several reasons. Whether you’d like to paying down high-interest rate credit cards or loans, pay off college tuition, start a business or remodel your home or some other reason, a cash-out refinance may be a good solution. Consider discussing the risks and rewards with me to make sure this kind of loan is right for your situation.
Consolidate debt. A mortgage continues to offer cheaper interest rates compared to credit cards, auto loans, personal loans and other consumer debt options. A cash-out refinance will usually offer lower interest rates over a longer-term vs other types of consumer debt.
Pay off the loan faster. When you refinance from a 30-year mortgage into a 15-year loan, you pay off the loan in half the time. As a result, you will pay less interest over the life of the loan. If your current interest rate is lower than interest rates available, it is likely a better decision to simply increase your principal payments each month. Talk to me to weigh your options and to decide if refinancing to a shorter term is right for you.
Get rid of FHA mortgage insurance. Private mortgage insurance on conventional home loans can be requested to be removed at 80% loan-to-value. However, the Federal Housing Administration mortgage insurance premium you pay on FHA loans cannot be removed in most cases. Consider a Conventional mortgage refinance when your loan-to-value is 80% or lower. A quick way to discover 80% LTV is to multiply your home’s current value by 80%. Is your current mortgage balance lower? You might be a good candidate! Give me a call to discuss your options to remove mortgage insurance and see what your new payment would be based on current interest rates.
Switch from an ARM to a fixed-rate loan. Adjustable-rate mortgages (ARMs) typically start out offering a low rate for a set amount of time. When that time is up, the rate adjusts based on current market conditions, usually going up. When faced with a higher interest rate than anticipated, it might be a good time to reach out to me as your lender to refinance into a more predictable fixed-rate mortgage. Going the other way, if you know you are moving and selling your home in less than three years, you might consider an ARM to take advantage of falling interest rates to reduce your mortgage payment is low as possible.
Credit has improved. Have you been working on your credit scores by paying down debt and clearing negative marks? With improved credit scores, you may have access to lower interest rates compared to when you initially made your home purchase. When market conditions are right, a stronger credit score can help you get a lower interest rate and save money.
Buy an investment property. When second home and investment interest rates are unfavorable, you may save on your mortgage payments by doing a cash-out refinance on your primary residence and using those funds to purchase an investment property.
Consolidate mortgages. Homebuyers often have multiple mortgages on their properties including a second mortgage for down payment assistance and a Home-Equity Line of Credit (HELOC). Often, the second loan has a higher rate than the primary loan. Refinancing can allow you to consolidate both loans under one with a more manageable interest rate.
Remove a second borrower. If you used a co-signer or second borrower to help you qualify for your mortgage and you have improved your personal debt-to-income ratio, you could remove them by refinancing the mortgage. This is especially true if you’ve paid down the loan significantly which may lower your mortgage payments with a new 30-year term and favorable interest rates. Give me a call, 435.590.1019 and let’s discuss your options.
Divorce or to buyout another party. You could do a cash-out refinance to buy out another party who has ownership interest in your home.

Loan Scenarios for Refinancing

Below, you will find several loan scenarios to show examples where a mortgage refinance would meet a borrower objective.

*Disclaimer: The below loan scenarios are based on completely made up and fictitious numbers including interest rate. If you’d like to see how a refinance would work for your goals, please start a questionnaire, loan application or give me a call to discuss your goals, current market interest rates, payment estimations and more.

Refinance Loan Scenario: Lower My Mortgage Payment

In this scenario, we are assuming you have an interest rate of 6% and are refinancing into a new 4% 30-year mortgage. We are also assuming that your property taxes and homeowner’s insurance to be $300/mo which could be higher or lower than your real numbers.

30-Year Mortgage Amount	$400,000	$400,000
Interest Rate	6% APR*	4% APR*
Principal and Interest	$2,398.20/mo.*	$1,909.66/mo.*
Prop Tax & Insurance	$300/mo.	$300/mo.
Total:	$2,698.20/mo.	$2,209.66/mo.
Payment Reduction	N/A	$488.54/mo.

Refinance Loan Scenario: Consolidate My Debt

In this scenario, we are assuming you have a $200,000 remaining mortgage balance and, after consolidating vehicles and a $100,000 remodel, your new loan amount is $400,000 with your home appraised at $500,000, meaning $400,000 is 80% loan-to-value.

We are assuming your prior mortgage interest rate was 3% APR* and the new mortgage interest rate is 4% APR* because interest rates increased after your original mortgage. In this scenario, we’re also assuming your property taxes and homeowner’s insurance to be $300/mo which could be higher or lower than your real numbers.

30-Year Mortgage Amount	$200,000	$400,000
Interest Rate	3% APR*	4% APR*
Principal and Interest	$843.21/mo.*	$1,909.66/mo.*
Prop Tax & Insurance	$300/mo.	$300/mo.
Total:	$1,143.21/mo.	$2,209.66/mo.
Payment Reduction	N/A	$1,066.45/mo.

Refinance Loan Scenario: Pay Off Mortgage Faster

In this scenario, we are assuming your current interest rate is 4.5% APR* and want to change your mortgage term to a 15-year mortgage to pay it off quicker and to take advantage of a hypothetical favorable market in which 15-year mortgages are a 3.5% APR*.

Term	30 Year	15 Year
Mortgage Amount	$300,000	$300,000
Interest Raste	4.5% APR*	3.5% APR*
Principal and Interest	$1,520.06/mo.*	$2,144.65/mo.*
Prop Tax & Insurance	$300/mo.	$300/mo.
Total:	$1,820.06/mo.	$2,444.65/mo.
Payment Increase:	N/A	$624.59/mo.

Refinance Loan Scenario: Remove Mortgage Insurance

This is one of my favorite loan scenarios to show clients because removing private mortgage insurance from a loan can make a significant impact on your mortgage payment even if the Conventional mortgage interest rate is higher.

In this scenario, we are assuming a $400,000 value three years ago and a new home value of $500,000 after 3 years. Of course, your home’s value is not guaranteed to go up in value and can actually decrease in value over that time period.

We are assuming your FHA interest rate was 3.5% APR* and the hypothetical new Conventional interest rate is 4.5% APR*.

Lastly, we are assuming your total refinance mortgage costs and fees would be $5,000. You’ve decided to roll the loan costs and fees into a new mortgage to avoid having to pay cash out of pocket at closing.

Term & Mortgage Type	30-Year FHA	30-Year Conventional
Initial 30-Year Mortgage	$386,000	N/A
Home Value	$400,000, 3 yr. ago	$500,000 today
Current / New Loan Amt	$355,000	$360,000
Interest Rate	3.5% APR*	4.5% APR*
Principal & Interest	$1,733.31/mo.*	$1,824.07/mo.
MIP based on FHA 0.85%	$273.42	$0
Prop Tax & Insurance	$300/mo.	$300/mo.
Total:	$2,306.73/mo.	$2,124.07/mo.
Payment Decrease:	N/A	$182.66/mo.

Even with a higher interest rate, because you would have a 72% loan-to-value, there would be no mortgage insurance allowing you to save money on your mortgage payment.

Want to pay off your loan faster? Consider putting that $182.66/mo difference in payment towards your principal each month. According to my mortgage calculator, this would pay off your mortgage in 25 years instead of 30 years, allowing you pay off your home 2 years faster compared to keeping your current FHA mortgage with regular payments and 3 years of payments already made. Exciting!

How Does Refinancing Work?

The application process for a mortgage refinance is very similar to what you experienced when you purchased your home. You consult with a mortgage lender, complete a loan application, we order a home appraisal when required and supply the required documentation to verify your income and assets. Refinances come with closing costs that often can be rolled into your new mortgage so there’s little to no cash out of pocket at closing. When your refinance mortgage funds, your prior mortgage is paid off including any prepayment penalties. If you are receiving cash out, your remaining funds are transferred to you. The old lender releases its claim on the home and the refinance lender files a new one.

Ready to tackle the refinance process? Here’s the steps:

Set your goal. Reduce monthly payments? Shorten the loan term? Get rid of FHA mortgage insurance? Buy out an interested party?
Complete your 60-second questionnaire and apply for a mortgage.
Lock your interest rate. When you lock the interest rate, it can’t be changed during a specified period.
Review the Loan Estimate.
Complete all required documentation and submit any conditions from your conditional approval required by the underwriter.
Review your Closing Disclosure.
Close on the loan. This is when you’ll pay those closing costs that were listed in the Loan Estimate and again in the Closing Disclosure. Your closing experience should be similar to your home purchase closing with exception to receiving keys at the end. Once you've closed on your loan, you will have three days to exercise your Right of Recission before the new loan is officially begun.

What Documents Do I Need for a Home Refinance?

Expect to provide paperwork, answer questions and to have your credit pulled for most refinance mortgage programs. The requested paperwork may include but not limited to:

W2 statements.
Federal tax returns.
30 days or more of your most recent pay stubs.
Income documentation.
Mortgage statement(s).
Homeowner’s insurance policies of all properties owned.
Property tax statements (if we can’t find them at your county website).
Deed of Trust (find this in your original mortgage paperwork).

Depending on your loan program and type of refinance, you may need an appraisal. Otherwise, once conditions are satisfied, we'll prepare your refinance documents for signing to get your loan closed as soon as possible!

Home Refinancing Costs to Consider

Provider of residential real estate closing cost data and technology, ClosingCorp, showed that national average closing cost for single-family homes in the first half of 2021 was $6,837 including taxes, and $3,836 excluding taxes. This represents a 12.3% and 10.5% year-over-year increase, respectively. At the same time, closing refinance costs increased marginally by 4.87% to $2,398 compared to 2020’s average of $2,287.

Many factors go into the final cost of your loan including closing costs, fees, origination points, appraisal fees. All of which can affect what you end up paying over the term of your loan. Some lenders may offer appealingly low interest rates meant to distract you from excessively high fees. Some advertised rates are based on the borrower paying points to lower the rate, adding to the up-front cost of the loan. Ask me about my refinance terms which may pleasantly surprise you.

Though this list isn’t exhaustive, here are some common closing costs you can expect to pay when refinancing:

Appraisal fee. An appraisal determines how much your home is worth and the amount you can borrow and is typically required by lenders. This service usually costs around $400 to $800 which depends on many factors and type of appraisal.
Discount points. Points are upfront charges that can help you get a lower interest rate. The cost will depend on how far you’d like to reduce the interest rate beyond the par / 0-point interest rate.
Loan origination fee: Lenders may charge you a fee to set up your loan along with underwriting and processing fees.
Title fees: This covers the cost of a title search and county filing fees.

Preparing for an Appraisal

It is a good idea to prepare for an appraisal. You’ll want to make sure your home looks its best. Tidy up and complete any minor repairs to leave a good impression. It’s also a good idea to put together a list of upgrades you’ve made to the home since you’ve owned it.

When Should You Consider Refinancing a Home?

A good rule of thumb is to consider refinancing to lower your payment when interest rates are 1% lower than your current rate. However, with larger loan amounts, you may see an advantage to reduce your rate with less than a 1% interest rate reduction.

A key area to understand is your break-even point, which is how long it will take for your savings from a lower interest rate or smaller monthly payment to recoup the costs of refinancing. Keep in mind that it generally takes at least a year before you hit your break-even point and begin saving money. You can use our mortgage refinance calculator to get a sense of your potential savings.

My preference is for borrowers to break even before three years.

Top Reasons Refinancing May Not Be a Good Idea

Although there’s many advantages to refinancing your mortgage, there are times when refinancing may not be a good idea. Is it worth it? Consider these factors:

Your credit score has dropped. Your credit score helps determine the interest rate you can get, which in turn affects your monthly payments and the total cost of your loan. If your credit has worsened since you bought your home, it may be difficult to refinance with better terms, even in the best interest rate environments.
The value of your home has decreased. In ideal circumstances, your home appreciates in value as you maintain and improve it. But if the fair market value of your home has fallen for reasons outside of your control, a mortgage refinance may not be possible, especially if you owe more than the property is worth.
You know you’re moving soon. If you’re planning to relocate in the next few years, there might not be enough time for you to reach the break-even point and recoup the costs of refinancing.
You haven’t built enough equity. Loan-to-value is a major influencer of interest rates. If you have just moved into your home, you may not have enough equity to make a refinance possible.
Your loan has a prepayment penalty. Some lenders charge a penalty for repaying a mortgage ahead of schedule. Check your loan terms to find out if your current home loan includes a prepayment penalty.
You would be extending your loan term. You can refinance to lower your interest rate and monthly mortgage payment, but this may result in a longer loan term. Consider a customizable Conventional refinance to avoid restarting your mortgage from the beginning to avoid paying extra interest over the life of your loan.
Severe damage to your home. Even though you had the house appraised when you bought it, you’ll likely (but not always) need another appraisal to refinance. It helps the lender verify that your new mortgage matches the home’s current value. If your home has severe damage that would heavily impact your appraisal’s quality score, you may be ineligible for a home refinance, and you’d be left with paying an appraisal fee without qualifying for a mortgage.
Switching from a fixed rate to an adjustable rate. Adjustable rates can start lower than fixed ones. While refinancing to an ARM can offer you short-term savings, because of the fluctuating market and economy, you could end up paying more in the long term. Staying with a fixed-term rate means you will make the same repayments each month without ever having to worry about potential increases in the market.
It will take longer than 3 years to break even with a new loan. As mentioned earlier, a good rule of thumb is to break even in less than 3 years with your new mortgage when considering loan closing costs. Do you know you’ll be in your home longer than 3 years? Awesome! You can provide yourself more time to break even when necessary.

How Important is My Credit Score?

If your credit score has dropped too much since you first took your loan, you might not qualify for interest rates low enough to make refinancing your loan a smart financial move. You need an interest rate that is low enough so that your monthly savings allow you to quickly recover the closing costs associated with a refinance.

Consider analyzing your credit report via the free, federally authorized service Annual Credit Report. Although this service does not provide access to your credit scores, it does allow you to review your full credit report with all three bureaus. By doing this, you may find erroneous or incorrect information that could be impacting your overall credit score.

In a recent survey done by Consumer Reports, of nearly 6,000 consumers, more than a third of survey participants found at least one error on their credit reports.

How to Apply for a Home Refinance with Scott Buehler

Are you ready to get started? Click here to begin my loan application today. You may also consider taking my 60-second questionnaire and having a short phone conversation to discuss your goals prior to your loan application, but it is completely up to you.

Things to Keep in Mind when Refinancing (FAQ)

How do I know if it is the right time to refinance? Many homeowners first consider refinancing when they notice that interest rates have dropped below their current rate. Perhaps you want to get in front of inflation by remodeling now vs waiting, then it might be a great time, no matter where interest rates are.

Is your ARM loan about to reset and your new payment significantly higher than you can afford? Consider a refinance ASAP. If you plan to stay in your home for several more years, moving to a fixed-rate mortgage can save you money and eliminate surprises.

Has your credit score improved? You may now qualify for better terms.

Are you refinancing from and to a 30-year mortgage?

Reducing your monthly payment is usually the goal and it can be tempting to refinance with another full 30-year term to lower your mortgage payment. However, consider that you will end up taking even longer to pay off your house and paying more interest over the remaining loan term.

Ask me to customize your refinance to match your remaining loan term. Have 27 years left? Let’s see if we can lower your interest rate and start a new loan with 27 years remaining. This way, you reduce the interest you pay over the life of the loan.

Don’t wait for the lowest rate. Even the most experienced mortgage lenders find it tough to predict when and how much rates will change. Trying to time your mortgage to get the very lowest rate could cause you to miss a good opportunity. If you are (mostly) happy where your rate can be locked, consider locking right away to ensure you’re getting the loan you need and want.

How long does it take to recover the costs of refinancing? You could recover the costs of refinancing within a year, but it usually takes a few years. The answer depends on the specifics of your situation. If you’re shaving 1 to 3 percentage points off your interest rate and have low upfront closing costs, you’ll likely recover your refinancing costs quickly. If it is going to take you longer than three years due to a slight reduction in interest rate, it may not be worth going through with the refinance.

Do you lose equity when you refinance? Yes, you can lose equity when you refinance if you use part of your loan amount to pay closing costs. Keep in mind you will likely regain the equity as the value of your home increases.

Can you get denied for a refinance? Yes. This is a brand-new mortgage which may, depending on the loan option, require qualification and approval like any other home loan. In most cases, your credit report will be reviewed, and your debt-to-income ratio will be a factor in qualifying. You could be denied a loan during the underwriting process if you don’t meet your lender’s minimum requirements. Streamline refinances offered by VA, FHA, and USDA may offer an easier pathway to refinancing so please ask me for specifics.

Will refinancing my home affect my credit? When a homeowner refinances their mortgage, we will likely need to pull credit which adds a hard inquiry to your credit history. This process will lower your credit score but only for a short period of time. As long as you don’t open any other credit cards and continue repaying any debts you have, your credit score can recover after a few months.

Is it cheaper to refinance with my current lender? Not necessarily. While it is possible having an established relationship with your current lender may lead to more favorable rates, it’s not a guarantee. Your best option for finding the best mortgage rate is to shop around and consider different types of refinance options.

Ready to Start a Refinance?

If you believe refinancing might benefit you, you first need to assess your current mortgage rate in order to determine the Loan to Value (LTV) ratio. This ratio is an indicator of whether you have “equity” on your home or not by comparing your mortgage loan balance to your home’s value.

The lower your LTV, the better position you are to refinance your mortgage.

When the time is right, refinancing is a great way to use your home as a financial tool. You can adjust your loan term, get a better interest rate and change your loan type to save money in the long term. Or cash out your home's equity and use the money as you need it.

Ready to change your loan? Get started with Scott Buehler and Guild Mortgage by discussing your refinance options, submitting a loan application and locking your rate. You can also get started by phone at (435) 590-1019.

Ultimate Guide to Home Refinancing