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How Can I Refinance My Home?


The Spire

Refinancing your home can be beneficial in various ways, including reducing your monthly payments and interest rate, changing the mortgage term, and getting access to your property’s equity. The refinancing process isn’t different from that of your initial mortgage loan. Depending on the lender, refinancing a home takes between 30-45 days. This process involves the following steps:


  1. Determine Your Goal

People refinance their homes due to various reasons. First, you may decide to refinance your home to shorten the term to pay off your loan quicker. For instance, if your initial mortgage was to run for 30 years, you may choose to refinance to a shorter duration, like 15years. Secondly, you may refinance your home to take advantage of lower interest rates, lowering your monthly payment and saving a lot of money. Lastly, home refinancing can allow you to use the equity in your home for high interest debt consolidation or to pull money out for home improvements.


  1. Evaluate Your Financial State

To be eligible for home refinancing, you must have an acceptable financial profile. It’s, therefore, essential to check various aspects such as your credit score, income, debt to income ratio, and your home’s equity. Lenders have the minimum requirements for one to qualify for a home refinance. Review each of these requirements with your lender  and see whether you’re on the right track.


  1. Search for Better Rates

Different lenders offer different refinance mortgage rates in Arizona.  One way to get better or favorable rates is to shop around. You can also ask your friends for references. Find a local lender with experience and a great reputation you are comfortable with.


  1. Pre-Approval Application

The next step is to complete a pre-approval application to receive an accurate quote. When making your application, the lender will require you to present various documents, including bank statements, pay stubs, debt documentation, identification, and proof of assets.  These items will determine your qualification status and ultimately the interest rate you are offered.


  1. Commit and Start

After reviewing the terms and current refinance rates AZ, commit to move forward with your lender. You will receive a set of disclosures fulling listing out all the numbers and costs of the transaction.  Review carefully and if comfortable sign them and you are on your way!


  1. Get a Home Appraisal

Most lenders ask for home appraisals to determine the actual value of your home. If your existing mortgage is government-backed, you might not require an appraisal. Also depending on where you live and the availability of appraisal data you may receive a property inspection waiver on a conventional loan that would save you money.


  1. Close the Deal

It’s essential to close the deal as soon as possible after rates are locked. Don’t close the deal before reviewing the terms and getting optimal satisfaction.

In conclusion, these are steps on how you can refinance your home. If you want to speed up the process, organize everything in advance, and understand the costs involved.

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.