Refinancing FAQ
1. Should I refinance my existing loan?
People refinance their existing loans for a number of reasons including obtaining a lower interest rate, to save on monthly payments and to change the term of the loan. People also choose to refinance if they want to switch from an adjustable rate to a fixed rate or to consolidate debt by refinancing for a higher loan amount and using the difference to pay off other debt. To see if it makes sense to refinance your loan, try our Refinance Calculator.
2. What costs are involved in refinancing?
You may pay an application fee as well as the appropriate closing costs. You may also choose to pay discount points if you want to buy down the interest rate.
If you have enough equity in your property, you can refinance with a loan amount greater than your current mortgage and keep the difference! You can use the money for home improvement, debt consolidation, or whatever else you would like.
4. What is roll-in refinancing?
Roll-in refinancing means you roll the closing costs into the new loan, allowing you to avoid paying the fees up-front. It can be particularly appropriate if the monthly payments of the new loan are lower than your current loan and if you plan on selling your home in a few years because the higher loan balance may matter less than the immediate benefit of lower monthly payments.
5. Do I need to get an appraisal when I refinance?
Yes, but if your mortgage is currently with GMAC Mortgage the appraisal criteria might be different. You can call your loan officer for details.
