What is a Mortgage Refinance?
A mortgage refinance, also called refinancing or refi, is the process where one loan is replaced by another loan, in most cases with more favorable terms. The new loan is used to pay off the original loan. Scott Buehler is a mortgage refinance lender in Utah and California.
Refinancing is done to take advantage of lower interest rates, to reduce monthly payments, remove a person off of a loan, consolidate debt, get cash-out of equity and many other reasons.
Generally, if refinancing will save you money, help you build equity, improve your property's value or allow you to pay off your mortgage faster, it’s a good decision.
Why Choose to Refinance a Mortgage?
- Take advantage of lower interest rates. When market interest rates are low compared to when you first purchased your home, it’s a great time to evaluate your current mortgage to see if it makes sense to qualify for a new home loan.
- Lower your mortgage payment.
- Shorten your loan terms to pay it off quicker.
- Remove a person off of the loan.
- Consolidate debt into a single low-interest loan.
- Reduce your mortgage payment as low as possible.
- Change loan program to remove mortgage insurance.
- Remodel or improve your home.
- You've improved your credit scores for a better rate.
- You need cash-out of your home's equity. A cash-out refinance replaces existing mortgages on a property, plus potentially provides cashback at closing. When your new mortgage is higher than what you currently owe, that difference between the cost of the transaction and your current loan is paid to you in cash.
Steps to a Mortgage Refinance
Step 1: Fill out my mortgage refinance questionnaire
This refinance questionnaire will give me the basics about your refinance needs. This step is not an official loan application but simply gives my team and I a better understanding of your refinance needs.
Step 2: Send your most recent mortgage statement
Your most recent mortgage statement will allow Scott Buehler to give you a more accurate new mortgage payment estimate. Your mortgage statement also provides other important information such as escrow payment, escrow balance and principal balance which are all used to provide you with complete transparency about what to expect.
Step 3: Talk to Scott Buehler about your mortgage refinance goals
With your questionnaire and mortgage statement sent, we will have a short conversation about your goals, what you'd like to achieve and begin a plan of action. This is an excellent time to request multiple loan scenarios, such as comparing payments and interest rates on a 10-year, 15-year, 20-year, or 30-year. Feel free to request as little or as much information to help you make an informed, educated decision.
Step 4: Submit the official loan application
Submit a loan application. The loan application should take about 10 minutes to complete which is the initial step along your mortgage refinance journey.
Step 5: Provide documentation
Begin submitting income documentation. Also begin gathering homeowner's insurance, property tax statements for all properties you own or have a financial interest in.
From here, Scott Buehler and his mortgage team will send loan disclosures for you to sign, order an appraisal when required, submit your loan for underwriting approval, send closing disclosures after underwriting review and we will then schedule your mortgage closing.
It's that simple!
Learn More About Refinancing a Home Loan
I have created the ultimate guide to home refinancing. This guide is an in-depth training on various refinance solutions, reasons to refinance, provides access to loan scenarios to visually show the differences an interest rate can make, explains documents needed, reasons you should, or should not consider a refinance and so much more!
I'm excited to help you as your preferred mortgage refinance lender! Questions or ready to begin? Call or text (435) 590-1019 or submit a refinance question.
Disclaimer: Loan terms and limits subject to change. This page is meant for educational purposes and is not a commitment to lend. To qualify for a home loan, please speak to Scott Buehler or apply online.