Mortgage Refinancing Information

What is Refinancing?

Refinancing is the process of getting better terms on your current mortgage by taking out a completely new loan. This new-and-improved mortgage will leverage positive market conditions, and Apex can customize it to your financial goals, helping you to achieve:

Lower monthly payments
Shorter loan terms & greater financial stability
Adjustable to fixed-rate loan conversions
Consolidated debt
Home enhancements & renovations
Removal of Private Mortgage Insurance premiums

Getting to Know the Refinance Process

As you might imagine, it only makes sense to choose a lender that has a clearly-defined, transparent process. Without this, who knows how long your loan could take… or how many hiccups you might experience along the way?

We value transparency and efficiency, which is why we lay out exactly what you can expect as we guide you through your refinancing process.

The Complete Process: Conversation to Closing

Our amazing team becomes your dedicated partners along this journey. In fact, thousands of previous Apex customers have stated exactly this in their online reviews of our team. We’ve developed a straightforward approach for you that begins with a simple discovery call.

Before you formally apply, we'll start with a conversation. Let’s get to know each other. We’ll talk over your refinancing goals (desired outcomes) and set expectations for the process. Want to prepare for this chat? Here are 10 essential questions you can ask our team.

Loan Locked In
Locking your loan to secure your interest rate can happen at any time during the process. Rate locks last for a specific duration of time, so it is important to discuss when you should lock with your loan officer.
Loan Documents Prepared and Sent to You
After receiving these documents, you will have 3 business days to sign and return them. (This quick turnaround can help us avoid any adverse effects on the terms of the loan, extension costs, and/or settlement delays.)
Appraisal
We will be ordering an appraisal of the property - expect to hear from the appraiser soon after returning the documents to us. Set up the appraisal/inspection to occur within 3 days of hearing from the appraiser. NOTE: The appraisal must occur during daylight hours to allow for exterior photos.

*It is possible (based on your unique loan criteria) that an appraisal would not be required. Please check with your Loan Officer team for details on your specific situation.
Processing
Now the ball’s in our court. Once your loan file in next in the queue, our in-house team of processors will work collaboratively and efficiently to review financial documents, order reports, and prepare your loan file for our underwriting team. Depending on our volume of loans at the time (a direct result of market conditions), processing times can range from 5 – 20 days. Rest assured, we will be in touch regarding next steps.
Underwriting
Our in-house underwriting team will review your loan file to verify it meets lending requirements. Then, they will either approve your loan, request anything else they might need to do so, or (in rare cases) deny/suspend the application. Depending on our volume of loans at the time (a direct result of market conditions), underwriting times can range from 5 – 20 days. Rest assured, we will be in touch with the good news immediately upon loan approval.
Loan Approval/Conditions
The loan is now approved (or conditionally approved). Additional items may be requested by our underwriting team. We will review these items with you and request that they be sent to us within 48 hours.
Clear to Close

Your refinance is cleared! Expect to receive a Closing Disclosure (“CD”) outlining the terms of your loan. Your Loan Officer team will contact you to schedule a settlement date and send our pre-close letter. In the meantime, you can prepare for closing.
Closing/Settlement
Congratulations! The loan is ready to close and we will contact you to schedule your settlement date. We will send you our “pre-close letter” ahead of settlement to outline the terms of the loan and provide settlement logistics.

Get in touch with an Apex representative to start the process!

Types of Refinancing

The two most common forms of refinancing are traditional refinances and cash-out refinances.

Traditional refinance: This straightforward form of refinancing is an effective way to make mortgage payments more affordable by lowering your interest rate. With this type of refinance, you can also shorten your loan term.

Cash-out refinance: If you’ve built equity in your home and would like a lump sum of cash for home improvements, paying off debt, or any number of other reasons, a cash-out refinance may be a good choice. With this lending option, a borrower refinances their home based on the current appraised value. After paying off the current mortgage, other liens, and closing costs, the borrower receives the equity difference in cash to use as they please. Similar to a Home Equity Loan, the interest from the first $100,000 of a cash-out refinance is tax deductible!* Interested in other methods of making use of your home equity?

Explore your options with our Find Your Financing page.

Government Refinance Loans

Apex provides a number of government refinance loans to qualified borrowers. These refinancing options are tied to specific government-insured loan programs and require limited paperwork and less stringent lending qualifications, among other benefits. Three common types of government refinance loans include:

FHA Streamline: This refinance loan is available to you if you financed your home with an FHA loan, meaning that it is insured by the Federal Housing Administration and protects the lender. The advantages of this program include: lowered lending fees, no new appraisal required, reduced processing time, and lowered monthly payments.

Home Affordable Refinance Program (HARP): This federal program allows borrowers to refinance up to 125% of their home’s value. Established in 2009 to help borrowers who are underwater on their mortgage, this program maintains the long-term affordability of your loan. Among other eligibility requirements, HARP is only available to borrowers whose mortgage is guaranteed by Fannie Mae or Freddie Mac.

VA Interest Rate Reduction Refinance Loan (IRRRL): If you financed your mortgage using a VA loan, you may be eligible for the IRRRL program. This loan lowers your interest rate (and therefore your monthly payment), and it requires no appraisal or credit underwriting package. You can also convert an Adjustable Rate Mortgage (ARM) to a Fixed-Rate mortgage with this form of refinancing.

Costs Associated with a Refinance

While the costs that accompany a refinance are important to consider when weighing your financing options, your main concern should be the overall savings refinancing will afford you. In order to find out how long it will take before you break even on a refinance, as well as the savings that you will gain afterward, our Refinance Break-Even Calculator is your best resource. The costs associated with a refinance will vary depending on the type of loan you are seeking, but you can expect to incur the following fees:

Loan Setup Fee/Application Fee/Origination Charge: These fees cover the cost of checking your credit report, processing your application, and other administrative tasks associated with funding your loan.
Appraisal Fee: This fee covers the cost for obtaining a current appraisal on your home to determine loan-to-value.
Closing/Settlement Agent or Attorney Review Fee: The professional who conducts the closing will charge a fee.
Title Insurance and Search: A new lender’s policy is required to obtain a new loan. Learn more about Title Insurance.
Additional Situational Expenses: Lesser charges such as flood certification fees, survey costs, pest inspection fees, and courier fees may also be required, depending on your situation.

Waiting for the Perfect Rate?

Eliminate the need to monitor rates with our convenient Auto-Lock system. When the time is right to refinance, our Auto-Lock service will ensure the rates are right, too. This service is simple: you tell us what rate you’re targeting, and we’ll lock it in when it becomes available. In an ever-changing market, our Auto-Lock service provides our clients with the ability to capitalize on limited-time opportunities and potentially save thousands. Get in touch with one of our Mortgage Bankers to talk out the specifics of your situation, and familiarize yourself with our streamlined refinancing process with our flowchart, A Clear Path to a Better Mortgage.

*Consult your tax adviser when it comes to mortgage interest deductibility.