REFINANCE FREQUENTLY ASKED QUESTIONS

Why refinance?

People refinance to cash out some of the home’s equity, consolidate their bills, to reduce their monthly payments by getting a lower current interest rate or to refinance their adjustable-rate mortgage (ARM) before their interest rate and payment increases.

What does it cost to refinance?

The costs associated with refinances can often be “rolled in” to the new mortgage, requiring no money out of your pocket.

Will I need an appraisal?

In most cases a new appraisal will be done on your home when refinancing. Sometimes an appraisal may not be required.

What is taking “cash-out?”

This is paying off your old mortgage with a new mortgage of a higher amount, if there is equity in your home to do so. Some choose to take cash out to pay off an adjusting home equity line, to do home improvements, to pay off other high interest bills or to pay for a single expense like a wedding or school tuition.