When it comes to refinancing, it can often be hard to figure out the best place to start.
We will give you everything you need to know about refinancing your current home, so you know what to expect every step of the way.
Pro Tip: A Homeownership Strategy Meeting is completely free through Churchill Mortgage!
By submitting this form, I/we agree to your Privacy Policy Terms of Use and authorize Churchill Mortgage Corporation and/or their Preferred Provider for our area and/or The Churchill Agency to receive the above information to assist in obtaining a home loan.
I/we also authorize Churchill Mortgage Corporation, The Churchill Agency and/or their Preferred Provider for our area to contact us regarding but not limited to mortgage and insurance services and products via telephone, mobile phone (including through automated dialing), and/or email, even if telephone numbers or email I/we provide are on any Do Not Call/Contact Registry, such as corporate, state, or the National Do Not Call Registry.
The submission of this form does not constitute in any way a formal loan application or a commitment for a loan. By communicating with us by phone, you consent to calls being recorded and monitored. By participating, you consent to receive text messages sent by an automatic telephone dialing system. Consent to these terms is not a condition of purchase.
The most important part of understanding the mortgage process is finding a lender who understands you and your home loan goals (like saving time and money). Here is a quick and easy view of the refinancing process:
First, you submit your mortgage application. This lays the groundwork for your Home Loan Specialist to be able to give you accurate interest rate quotes and down payment options.
After your application is completed, you’ll start getting your home inspection and appraisal under wraps. This is when you’ll be asked for any additional documentation to close your loan, if you haven’t already provided it.
Your new home loan will go through underwriting. This just verifies all conditions on your loan are approved and then you will be issued a “clear to close.”
The underwriter will issue your final approval, process your closing paperwork, and schedule your closing date and time. On your official closing day, you will have a lot of documents to sign. Your old loan will be paid off, and your new mortgage will be funded.
When refinancing your current home loan, a 15-year conventional mortgage is a popular option. It’s designed to be paid off over 15 years and will build equity in your home quicker.
Pros:
You can typically lower your total borrowing cost with lower interest rates and eliminate debt quicker since you’ll spend less in interest over the life of the loan.
Cons:
Your monthly payments will be higher and oftentimes there is a higher debt-to-income ratio required to qualify.
Many people will refinance into a 30-year mortgage when moving from an adjustable rate mortgage (ARM) or FHA loan.
Pros:
Your monthly payment will be lower which frees up cash for savings, retirement, and other needs. You are still able to pay extra each month (when possible) to reduce the overall loan term to lower than 30 years.
Cons:
Your interest rate will typically be higher on a 30-year vs. a 15-year loan, and your loan balance will remain higher for longer. Home equity takes longer to build and you’ll ultimately spend more over the life of your loan.
By submitting this form, I/we agree to your Privacy Policy Terms of Use and authorize Churchill Mortgage Corporation and/or their Preferred Provider for our area and/or The Churchill Agency to receive the above information to assist in obtaining a home loan.
I/we also authorize Churchill Mortgage Corporation, The Churchill Agency and/or their Preferred Provider for our area to contact us regarding but not limited to mortgage and insurance services and products via telephone, mobile phone (including through automated dialing), and/or email, even if telephone numbers or email I/we provide are on any Do Not Call/Contact Registry, such as corporate, state, or the National Do Not Call Registry.
The submission of this form does not constitute in any way a formal loan application or a commitment for a loan. By communicating with us by phone, you consent to calls being recorded and monitored. By participating, you consent to receive text messages sent by an automatic telephone dialing system. Consent to these terms is not a condition of purchase.
