Guide for How to Refinance a Mortgage
Refinancing your mortgage loan at a lower interest rate can result in a lower mortgage payment. Qualifying for a mortgage refinance requires meeting the lender's qualifications. Do your homework and educate yourself on the process. Being prepared increases your chances of a loan approval.
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Instructions
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1
Order your credit report and score from one of the three major credit bureaus. The higher your score, the better chance you will qualify for a loan. Improve your credit score by paying bills on time and reducing debts.
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Determine a purpose for the refinance. Borrowers refinance for different reasons, such as lowering their interest rate and acquiring cash from their equity in the home.
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Assess your personal finances. You'll need money to refinance your mortgage loan. Settlement costs paid at closing equal approximately 6 percent of the loan balance, and you'll need funds to pay for a home appraisal and application fee.
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Gather your financial information. Show your mortgage lender proof of income by providing copies of your paycheck stubs or tax returns.
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Contact your current mortgage lender to request a refinance quote. As a current customer you may qualify for a lower interest rate or reduced closing costs.
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Contact at least two additional mortgage companies for refinance quotes. Comparison shopping ensures the best deal on your new home loan.
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