Loan Refinancing 101 [infographic]

HomeBlogLoan Refinancing 101 [infographic]

Our team at Harbor Mortgage Company has extensive experience in the financial industry, and we want to help you make the best decisions to improve your situation. In many cases, the best way to improve your financial standing is to refinance a loan, usually your mortgage. Below, we will provide a basic overview of how loan refinancing works, so you know what to expect from the process.

Loan Refinancing 101

  • What Loan Refinancing Means – To put it simply, refinancing a loan means trading in your existing loan agreement for a new one, with new terms and a new monthly payment.
  • Reasons to Refinance a Loan – People refinance their mortgages for a variety of reasons, with some of the more popular motivations being to get a more favorable interest rate or payment structure, to remove someone from the mortgage (such as an ex-spouse after a divorce), or to make use of your home’s equity. In the last example, you would be borrowing money up to the value of your home. People often use this kind of refinancing to fund home improvement projects, a child’s college education, or other endeavors.
  • Applying for Loan Refinancing – In order to refinance a loan, you will need to provide the same information you gave your lender when applying for your original mortgage, including information about your income, assets, and debts. You’ll need to provide financial documents, such as your most recent paychecks, W2s, and bank statements. From there, your lender will review your information to make sure it’s accurate, and you will need to get your home appraised to determine its current value. After you loan is approved and processed, all you need to do is sign the paperwork to seal the deal.

To learn more about our loan refinancing options, simply give our team a call today.