Frequently Asked Questions about Home Loan Refinance

Here are the answers to the most commonly asked questions about home loan refinance.

What is home loan refinance?

Home loan refinance involves taking out a new loan to pay off your existing mortgage. By taking out a new mortgage, you often receive lower rates and better terms.

How do I apply for home loan refinance?

You can apply for home loan refinance by clicking "apply now" anywhere on our website. Our application will take you under five minutes to fill out. Once you submit your application, we will then provide you with at least four quotes on home loan refinance from major lenders. You will see these quotes side-by-side to make comparison shopping as easy as possible.

When should I take advantage of home loan refinance?

If you would like to lower your interest rates, reduce your monthly payments, extend or shorten your repayment term, switch to an ARM or a fixed-rate mortgage, or turn home equity into cash, home loan refinance is a good idea. Refinancing is also a smart decision when interest rates are low, as you can lock in these rates for the life of your mortgage. Similarly, if you have an ARM and interest rates are rising, you might consider switching to a fixed-rate mortgage with home loan refinance.

Should I get a fixed-rate or ARM with home loan refinance?

This depends on your financial goals and your reasons for using home loan refinance. If you plan to stay in your home for a while, would like to lock in a low interest rate, and want consistent monthly payments, a fixed-rate refinancing loan is ideal. If, on the other hand, you don't plan to stay in your home for longer than a year or two and want to save money on payments immediately, an ARM is a better decision.

When I home loan refinance, should I get a 15-year or 30-year term?

The decision between a 15-year and 30-year term is a trade off between higher monthly payments and higher total interest expense. That is, if you choose a longer term, your monthly payments will be lower, but you will pay more in total interest expenses over the life of the mortgage. When you are deciding on home loan refinance, consider if you can handle a higher monthly payment to save on interest in the long-run with a 15-year term.

Is this site run by a home loan refinance lender?

No, we are an independent, free referral service for people looking to home loan refinance. We are not a lender. We just match our customers with major local, regional, and national lenders who can supply them with competitive quotes on home loan refinance. You can trust our information is objective because we have no stake in which lender you choose.