Refinancing FAQ

Mortgage refinancing entails replacing your current loan with a new one, frequently in order to benefit from lower interest rates, change the length of your loan, or access equity in your home. It allows you to renegotiate the terms of your mortgage to better suit your current financial situation and goals.

There are several reasons why refinancing your mortgage might be beneficial:

• Lower Interest Rates: If current mortgage rates are lower than what you currently have, refinancing can help reduce your monthly payments and save you money over time.
• Change In Loan Term: You may choose to refinance to switch from a longer-term mortgage to a shorter-term one, allowing you to pay off your mortgage faster and save on interest.
• Access Equity: Refinancing can provide you with the opportunity to tap into your home’s equity to fund home improvements, consolidate debt, or meet other financial needs.
• Change Loan Type: You can also refinance to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage or vice versa, depending on your preferences and financial goals.

The ideal time to refinance your mortgage depends on various factors, such as:

• Current Interest Rates: Monitoring market rates can help you determine if refinancing would be advantageous.
• Your Financial Goals: If your objective is to lower monthly payments, access equity, or pay off your mortgage sooner, refinancing might be a suitable option.
• Break-Even Point: Calculate the break-even point, considering closing costs and the potential savings from refinancing, to determine how long it would take to recoup the costs.

Our experienced loan officers can evaluate your specific situation and provide personalized guidance on the optimal timing for refinancing.

While the specific documentation requirements may vary, common documents typically include:

• Proof of identification (driver’s license, passport, etc.)
• Proof of income (pay stubs, tax returns, W-2 forms)
• Bank statements
• Property appraisal
• Homeowner’s insurance information
• Existing mortgage documentation

Our team will guide you through the documentation process and inform you of any additional requirements based on your unique circumstances.

Having a lower credit score may pose challenges in the refinancing process. However, at Stockton Mortgage, we strive to assist clients with varying credit profiles. Our loan officers can evaluate your situation, explore available options, and provide guidance on improving your creditworthiness if necessary.

The refinancing process typically takes around 30 to 45 days from application submission to loan closing. However, the timeline can vary depending on factors such as the complexity of the loan, documentation provided, and appraisal and inspection requirements. Our team works diligently to expedite the process while ensuring accuracy and efficiency.

Yes, similar to the initial mortgage process, refinancing involves closing costs, which can include loan origination fees, appraisal fees, title insurance, and other expenses. However, the exact amount of closing costs will depend on factors such as the loan amount, property type, and specific circumstances. Our loan officers will provide you with a detailed estimate of the closing costs involved in your refinancing transaction.

While a previous bankruptcy can impact your refinancing options, it is not necessarily a barrier. Each situation is unique, and our loan officers will assess your circumstances and explore available solutions to help you refinance your mortgage.