How Do You Refinance a Mortgage?

How Do You Refinance a Mortgage?

Refinance a mortgage by applying for a home refinancing loan with a lender in a manner similar to applying for a home mortgage, according to Bank of America. It may be possible to get a loan with the same lender or seek a refinancing loan with another lender.

Use the following steps to apply to refinance a mortgage.

  1. Research different lenders
  2. Look at different mortgage lenders and see if they offer refinancing loans to customers. Homeowners may even want to contact their lender to see if refinancing is an option. When looking as these lenders, get interest rate estimates and look at the annual percentage rate and any extra fees for refinancing.

  3. Consider loan options
  4. Check out the different types of refinancing loans available with lenders. They should offer either a fixed rate mortgage, an adjustable-rate mortgage or both. Homeowners planning on staying in their homes for the long-term may benefit from choosing a fixed rate mortgage over the adjustable rate, according to Chase Bank. Homeowners may also want to check and see if the lender offers discount points, which allows homeowners to pay for a lower interest rate.

  5. Prepare the application
  6. Prepare the mortgage refinancing application and submit it to the lender. The application should include proof of income, such as W-2s and tax returns, financial statements, the most recent mortgage statement and a copy of the Purchase and Sales Agreement.