How to Refinance a House

Video Transcript

"Hello my name is Alicia Lowther, licensed real estate professional with Realty Executives, and I'm going to give you some pointers on how to refinance a house. Obtaining a refinance is very similar as to when you received your initial mortgage. The first thing you need to do though is determine if it makes financial sense for you. You might of heard the saying that if interest rates are two points below what your current interest rate is then you need to refinance. Well that saying is kind of dated, because that evolved when pretty much everyone was on a 30 year fixed rate mortgage. Now there's so many different programs out there that you really need to do your research and see if it makes sense, financial sense for you. What you'll want to do is talk to a lender, talk to mortgage brokers, ask them what's their rate, what different fees, what their process is. So you want to educate yourself and talk to different lenders. Once you found one you know calculate "will I be saving money in the long run?" If you decide to proceed then it's simple you just fill out an application and remember when you received your first mortgage or applied for remember all that documentation that you had to provide, well be prepared to provide it all over again. Bank statements, tax returns, all that good stuff, start gathering your documents. Then once you provide that information to the lender you selected, their going to review it all and then they'll approve you hopefully. Once you're approved that payment is once you're approved you sign the closing documents and then the payment goes to pay off your current mortgage. After the current mortgage is paid you'll make your first payment to the new lender the following month. My name is Alicia Lowther, licensed real estate professional with Realty Executives discussing how to refinance your mortgage."