Refinance Mortgage FAQ

There are a number of questions that we hear from our customers on a regular basis about refi mortgages and the refi mortgage process. The purpose of this section is to help answer those questions and clear up any issues that our website visitors might be unsure of regarding refi mortgages and the refi mortgage process.

Refinance FAQ and Answers

1. I've heard interest rates are going back up. Is it still a good time to refinance?

Absolutely! While interest rates have gone up slightly recently, they are still near the lowest they've ever been. If you have some equity in your home and you're thinking of refinancing, this is a great time to do it! In addition to interest rates for all types of mortgage loans being near record lows, there is also a wide variety of mortgage programs available to choose from in today's market.

2. How much equity do I need in my home to be able to refinance it?

Unlike purchase mortgages, lenders don't require a down payment for refi mortgages. Instead, they require borrowers to have a certain percentage of equity in the home. This percentage is typically at least 5 to 10 percent, though the exact amount varies according to the borrower and the type of mortgage selected. Some mortgage programs are available that allow a borrower to refinance with less than 5 percent equity, but they have stricter qualifying guidelines than regular refi mortgage loans.

3. Will refinancing my home cost me any money out of pocket?

Not necessarily. Refi mortgages don't require a down payment, but they do incur closing costs just like regular purchase mortgages. However, lenders typically allow borrowers to add the closing costs into the loan amount. Doing this reduces the equity a borrower has in the home, but it allows them to refinance with no out of pocket costs.

Calculators

Mortgage Calculator
Our mortgage calculator can calculate principal and interest payments, calculate total monthly payments and display an amortization report.

Refinance Calculator
Our refinance calculator can calculate whether it would save you money to refinance your existing mortgage loan (s).

Local Information

We specialize in loans for borrowers in the greater Phoenix metropolitan area. Click a link below for more information about a particular town:

Scottsdale

Tempe

Chandler

Mesa

Gilbert

Cave Creek