You need 20% equity to refinance.
100% not true. While loans with less than 20% equity may require mortgage insurance, refinancing could still be a good move for you. Particularly if it saves you money in the long run over the life of the loan.
You must reach the “break-even point” on your current loan.
Point Break is an awesome movie. But the break-even point on your mortgage is awesome too. It’s when you’ve recouped your original closing costs. But you don’t need to reach it in order to potentially benefit from a refi. Utah, get me two!
You can only refinance your mortgage once.
Refinancing is all you can eat. You can do it as many times as you like. However, the fees are significant, so it pays to ensure each refi makes sense. Use a refinance calculator to see if this is a route you want to take.
You won’t save that much money by refinancing.
A penny saved is a penny earned. If you were to reduce your rate by just 1/8th of a percent, you could save tens of thousands of dollars over the life of your loan. That’s a lot of pennies.
Applications require a lot of documents.
Not true. Applications require a TON of documents. But with our No Sweat™ Process we streamline the paperwork and do all the heavy lifting for you. Plus, if you’ve worked with us in the past, we may just need to ask you a few simple questions.