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.

3. I am interested in refinancing my GMAC Mortgage loan. Are there benefits to refinancing with GMAC Mortgage?

GMAC Mortgage offers an Express Refi for its current customers. This greatly shortens the application process saving you time and money. You will not have to reverify employment or be subjected to another credit check if you are current on your mortgage loan and have not made any late payments throughout the course of the loan. The Express Refi is not available with a cash-out option.

4. What is a cash-out option?

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.

5. What is GMAC Mortgage's rolldown option?

Our rolldown option allows you to refinance for free! While the rate is slightly higher, you will pay no fee to get your new loan. In effect, as long as our rolldown rate is lower than your existing rate, it makes financial sense to refinance because there is no cost to do so.

6. What is roll-in refinancing?

Rolling-in your loan costs is especially attractive when refinancing. By rolling-in your costs, you incur no expense and therefore have no "payback period". The payback period is the time required to recoup the cost of your new loan through the monthly savings you get from the difference between your new lower payments and your old ones. For example, if your new loan's payments are $100/month less than your old one, but you had to pay $1200 to refinance, you'd have a payback period of 12 months before you'd actually start saving. By rolling-in the cost of your refinance, your actual savings begin immediately. Rolling-in your costs is particularly appropriate if you're planning to sell or refinance again in a few years because it will matter less that the actual loan amount is higher because you will immediately be able to enjoy to the savings.

7. 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 on the express refi process for current GMAC Mortgage customers.