Explore various loan options for refinancing your mortgage with Progressive Lending Group. Whether you're looking for a lower interest rate, cash-out refinance, or debt consolidation, we've got you covered. Refinancing can help you save money, reduce your monthly payments, or pay off your loan faster. Contact us today to learn more about the benefits of refinancing.

​

​Refinancing a mortgage replaces your existing home loan with a new one, typically with a different interest rate, term, or loan type. While the process is similar to obtaining your original mortgage, you must determine your financial goals and weigh the costs against the potential benefits. 

​

Working with a mortgage broker to refinance can save time by accessing multiple lenders and handling paperwork.   Brokers find lenders and pull your credit report, verify your financial information, and help with paperwork. You typically don't pay them directly, as they receive compensation from lenders.  To start, review your current mortgage, check your credit score, estimate your home's equity, and gather necessary documents like pay stubs and tax returns. 

​

Reasons to refinance

Common reasons to refinance include: 

• Lower your interest rate: If current rates are lower than your existing mortgage rate, refinancing can reduce your monthly payments and save you thousands over the life of the loan. Your interest rate may also improve if your credit score has increased since you first bought your home.

• Access cash from your equity: A cash-out refinance allows you to borrow more than you owe on your current mortgage. You can take the difference in cash to fund home improvements, pay for a child's college tuition, or consolidate high-interest debt.

• Change your loan term: You can shorten your loan term (e.g., from a 30-year to a 15-year mortgage) to pay off your home faster and save on interest. Alternatively, you can extend the term to lower your monthly payments for more budget flexibility.

• Switch loan types: If you have an adjustable-rate mortgage (ARM), you might refinance to a fixed-rate mortgage for predictable payments. You can also refinance from an FHA loan to a conventional loan to remove mortgage insurance premiums.

• Eliminate mortgage insurance: If you have at least 20% equity in your home, you can refinance to remove Private Mortgage Insurance (PMI) from your monthly payments. 

 

The mortgage refinancing process

The process generally takes 30 to 45 days and involves these steps: 

1. Define your goal. Clarify your reason for refinancing, whether it's to lower your rate, shorten your term, or get cash from your equity.

2. Assess your financial situation. Review your credit score, debt-to-income (DTI) ratio, and home equity. Lenders generally require a minimum credit score of 620 for a conventional refinance and prefer a DTI of 43% or less.

3. Complete the application. Gather necessary documents like recent pay stubs, W-2s, tax returns, and bank statements for the application.

4. Lock your interest rate. Once approved, you can lock in your interest rate to protect it from market fluctuations while the loan closes.

5. Underwriting and appraisal. The lender will verify your financial information and order an appraisal (if needed) to determine your home's current market value.

6. Close on the new loan.

​