Whether you’re ready to refinance or simply weighing your options, the experts at Apex can help. With Apex, you’ll have direct access to a professional who can help you determine when to refinance, help you choose the best type of loan, and answer any questions you have about your specific financial situation.
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:
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? Learn about our equity loans and lines of credit here.
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 Adjustiable Rate Mortgage (ARM) to a Fixed-Rate mortgage with this form of refinancing.
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:
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.