Refinance a Home Questions: Top Ten Questions People Ask

Banks Editorial Team · April 24, 2018

Refinance a home questions? Prior you swim in the endeavor of refinancing your home, we have identified for you the questions other people had.
These include questions about interest rates, break-even point, closing cost and other refinancing costs. From the required documents one needs to the right time to refinance, keep reading to get answers for all. Surely you want to know if refinancing your home will influence your credit score? Or how much you can save in the process? Keep reading as we have done half the home work for you.

Refinance a Home Questions: The Top 10

  1. What is the interest rate?
  2. What’s your break-even point?
  3. Will my new mortgage have a shorter term?
  4. What are the mortgage refinancing fees?
  5. Is it a good time to refinance your home?
  6. How Long does it take to refinance your home?
  7. What are the closing costs, appraisal cost, and loan origination fees?
  8. Will it affect your credit?
  9. What are your options to refinance your home?
  10. What type of documentation do you need to refinance?

The top questions you should ask when refinancing your home are mainly related to costs, interest rate, timing and how it can affect your credit. Ask the right questions to ensure refinancing your home will truly result in savings, and you get the best deal possible.

1. What is the Interest Rate?

This is one of the most important question. If you are trying to get the best deal possible while refinancing, the interest rate is a crucial part of that. You should also compare the new mortgage payment against the current one.

2. What’s your Break-even Point?

Everyone wants to know how long it would take for their refinancing to pay for itself. This information is key to determine whether is worth it and if you should refinance your home.

3. Will my New Mortgage Have a Shorter Term?

When you are looking to refinance, a smaller interest rate and a shorter term could mean huge savings for you. The downside is generally that it may result in a higher monthly payment. But if you have a good credit score, you may not mind making larger monthly payments if the savings are attractive enough.

4. What are the Mortgage Refinancing Fees?

Everyone is wary about losing money on a refinance. Therefore, part of your concern should be knowing how much it will cost you. To find the best deal possible, you should compare fees and offers of different lenders.

5. Is it a Good Time to Refinance your Home?

Even when you may have made up your mind to refinance your home, you may still want a “second” opinion to determine if refinancing makes sense for you at this time. Or if waiting for the right time to refinance your home may be a good idea to increase the savings.

6. How Long does it Take to Refinance your Home?

Set expectations on how long it will take for the refinancing to be done after all the required documents are submitted. Have a clear timeframe as well as an idea of how much of your time the whole process will require.

7. What are the Closing Costs, Appraisal Cost, and Loan Origination Fees?

Refinance a home costs: you should ask about closing cost, origination fees, as well as any other hidden fees you’ll have to pay during the refinancing process. Always demand transparency on every cost you will incur when refinancing your home. This will make it easier to compare costs and choose amongst the top lenders in the market.

8. Will it Affect your Credit?

You should generally keep an eye on your credit score and understand the importance of a good credit. If you have good credit, it’s perfectly understandable that you may be concerned about the way refinancing your home will affect your credit.

9. What are your Options to Refinance your Home?

You should consider all available refinancing options, the pros and cons of each way of each of them prior settling for one lender.

10. What Type of Documentation do you Need to Refinance?

Be clear on how to refinance your home, the overview of the process and each of the steps. Find out the documentation required to refinance your home to save time and costs.

Refinance a Home Questions: Our methodology

Although it’s difficult to objectively determine the exact questions that people ask about refinancing a home, we have compiled the ones you should ask after reviewing dozens of relevant resources. Questions like below:

  • What is the interest rate?
  • What’s your break-even point?
  • What documentation is needed?
  • How would it affect their credit score?
  • What is the cost?

We searched extensively through industry reports and databases such as Bankrate, Smart Asset, Trulia, Mortgage, and American Financing and checked relevant media reports from reputed sources such as Forbes, Huffington Post or Nerdwallet. We investigated government databases such as The National Mortgage Database and other relevant research papers on the subject. All so you don’t have to.
We also looked into companies in the financial industry that deal with people looking to refinance their home and help them with questions and concerns they usually have during the refinancing process. Our goal was to determine the top ten questions that repeat in all sources, so that you know what questions you should ask before refinancing your home.

 

 

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