Refinancing your mortgage is essentially replacing current mortgage loan with a new one.
There are many different reasons to refinance your mortgage, and they’ll vary for each person. Common reasons include:
Like a purchase loan, refinances require closing costs, but these costs vary depending on your situation. In many cases, paying to refinance means you’ll spend less on your mortgage in the long run. Your Loan Officer can help you determine a break-even point so you can find out how long you’d need to plan on staying in your home for refinancing to be financially advantageous.
If you’d like to eliminate your private mortgage insurance payments, you’ll need at least 20% equity in your home before refinancing your loan. However, you can often refinance even if you have less equity built up. Your Loan Officer can help determine whether you have enough equity to refinance.
Because refinancing is replacing your old mortgage with a new one, the process isn’t that different from the process you went through when buying your home.
You’ll apply for a loan, provide documentation to your lender, get your home appraised to determine its value, go through the underwriting process and close on your loan.
As always, your PRMI Loan Officer will happily walk you through the process so you know what to expect
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by Primary Residential Mortgage, Inc. NMLS#: 919520 Utah DRE Mortgage Office License # 8335595. MLO 0117736. MC3094-122. All loans subject to credit and property approval. PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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