Frequently asked questions
When should I refinance?
What are Points?
Should I pay points to lower my interest rate?
What is an APR?
What does it mean to lock the interest rate?
What documents do I need to prepare for my loan application?
How is my credit judged by lenders?
What can I do to improve my credit score?
What is an appraisal?
What is PMI (Private Mortgage Insurance)?
What is 80-10-10 financing?
What happens at closing?
When should I refinance?
It’s generally a good time to refinance when mortgage rates are 2% lower than the current rate on your loan. It may be a viable option even if the interest rate difference is only 1% or less. Any reduction can trim your monthly mortgage payments. Example: Your payment, excluding taxes and insurance, would be about $770 on a $100,000 loan at 8.5%; if the rate were lowered to 7.5%, your payment would then be $700, now you’re saving $70 per month. Your savings depends on your income, budget, loan amount, and interest rate changes. Your trusted lender can help you calculate your options.