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Could you use some flexibility to help you achieve your financial goals? Refinancing is a great option.
What Is Mortgage Refinancing?
Mortgage refinancing essentially replaces the terms of your old mortgage with new terms. It doesn’t matter what type of residential property you own; refinancing your mortgage may be an advantage in the long run.
Not sure if refinancing your mortgage is the right option for you? Check out the list of common reasons for refinancing below. If any of them resonate with you, it might be time to look into a new mortgage.
- You’d like to change the terms of your loan: By refinancing, you may shorten the amortization period to get a better interest rate or lengthen it to get a lower monthly payment.
- You’d like to get a lower interest rate on the remaining balance owed: If interest rates have gone down significantly since your mortgage began, refinancing can help you save on the remaining monthly payments at a lower rate.
- You’d like to change the type of loan you have: Perhaps you want to change from an adjustable-rate mortgage to a conventional one or vice versa, or you’d like to go from an FHA loan to a privately funded one or vice versa. A mortgage refinance could help you do that.
- You’d like to reduce or remove private mortgage insurance (PMI): PMI can be a big expense. If your financial circumstances have changed since you took out your mortgage, refinancing can help you get rid of PMI and gain more wiggle room in your budget.
- You’d like to cash out any equity gained: Tapping equity is a great reason to refinance your mortgage. We’ll go into more detail on how this works below.
How Does Mortgage Refinancing Compare to Cash Out Refinancing?
Cash-out refinancing is a special type of refinance in which you can take out a loan that is greater than the amount you still owe on your mortgage and pocket the extra cash. If your home’s value has increased since the time your mortgage amortization period began, you may have built up enough equity to use that extra cash for a home improvement project, debt consolidation, or another expense. Using the acquired equity from your property, money can typically be borrowed at a much lower interest rate than a standard loan. However, please note that a cash out loan can affect your taxes.
The IRS now sees cash out refinancing as debt restructuring. Under this law, deductions for expenses related to your mortgage have changed. Other things have changed as well. Because of this, cash-out refinancing might not be the best option for you if you need to refinance your mortgage.
Luckily, the Loan Specialists at Arab Gateway Funds Lending are here to help. Depending on why you seek to refinance and what you’re hoping to get out of it, we can help you determine if you’d be better off with a routine mortgage refinance or a cash-out refinance. Just fill out our Super-Simple Application™ to get started!
Arab Gateway Funds Mortgage Refinancing Advantages:
- Maybe you want to extend the term of your mortgage and have lower payments now.
- Maybe you’d like to shorten the term of your loan and pay less over time.
- You might even be able to reduce or remove private mortgage insurance (PMI) as well.
- In most cases, the cost to refinance is rolled over into your new loan; so there’s virtually nothing you’ll need to pay.
- And while you’re at it, you can probably skip a couple of payments!
Arab Gateway Funds Mortgage Loans Are The Right Solution
Our Loan Specialists at arabgatewayfunds.com will help you evaluate all your choices. We’re experts at finding you the best options and values.
100% Satisfaction–Our Extreme Guarantee
The Super-Simple Application™ takes fewer than 3 minutes to complete. A knowledgeable Loan Specialist will contact you right away, help you with any questions, and assist you in making the best choice. There’s no obligation on your part. The only obligation is our obligation to ensure you are 100% satisfied with our service
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Documents Needed For All Loans:
- A copy of your current Drivers License and Social Security Card
- Most recent 30 days worth of pay stubs
- Most recent 60 days worth of bank statements. (If using retirement funds, please provide terms and conditions of withdrawal)
- Most recent 2 years W-2’s (please provide signed and dated Year-To-Date Profit and Loss statements if self-employed)
- Most recent 2 years IRS tax returns (both personal and business, all pages, all schedules please)
Mortgage Refinance FAQ
How much will refinancing cost?
Typically, this depends on the lender and the value of your property. You should expect to pay between 2 and 6% of the loan’s total value. In many cases, none of these costs will be out-of-pocket, including closing costs.
What is the ideal time to refinance?
There is no “ideal time” for refinancing. Whether refinancing is right for you depends on several factors, including your credit score and current interest rates. Our Loan Specialists will have a look at your unique situation and help you evaluate all your options. You can also use Arab Gateway Funds ’s mortgage calculator tool to figure out what you can afford.
How soon must I wait to refinance following the closing?
This depends on the lender and the type of loan you have. In some cases, you might be able to refinance in as little as 30 days. In others, you might have to wait as long as a year.
Will a refinance affect my credit score?
Yes. When you request to refinance, the lender will request a hard credit inquiry, which will lower your score for a short amount of time. However, if you continue to pay debts as agreed and don’t open any new accounts, your score should go back up.
Ask away. We love questions!
Frequently Asked Questions
A Loan Specialist is here to help:
- answers@arabgatewayfunds.com
- We’re available Mon-Fri 8 a.m.–7 p.m.
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If you’re in the neighborhood,
drop by our World Headquarters: The Corporation Trust Center 1209 Orange St,
Wilmington New Castle, DE 19801