Dump the dud. Rates are lower now than when you bought your home, so why pay more when you could pay less? You have more options now, too. You can take cash out for kitchen renovations, or consolidate never-ending credit card bills. You can even refinance to a lower rate AND take cash out. That’s a win-win.
Yep, there are closing costs any time you refinance, but a good deal saves you more than you pay. (That’s the name of the game.) PLUS, with Lower, all of your costs are rolled into your newly refinanced loan. So nothing out-of-pocket. You’ll be saving more than what you’re paying. How’s that for ROI?
It’s. All. From. Your. Phone. Our all-digital process makes everything easy. Just snap a photo and upload your docs. Sign online. No need for paper. No hoops to jump through. Simple, right? You’ll be saving in no time.
Every month you put off refinancing, you’re missing out on huge savings. You don’t have to (and don’t want to) wait until you have no other choice. Your home’s an asset that’s supposed to build your wealth—and refinancing helps you do just that. Our advice? Refinance now, then invest that extra money or pay monthly expenses that matter most.
You used to be right, but not anymore. Gov lowered requirements, killed fees, waived appraisals. Practically begging you to Refi.
Mortgage rates have literally never been lower in the last 5,000 years, and have been considered low for most of our lifetime. (They were a whopping 16% in 1983.) Holding out for a potential extra .25% just postpones your saving to later. And if rates DO drop lower? You can always refinance again in the future. Plus, with Lower, you get Free Refi for Life. (No lending fees on future refinances for life.)
I'm a first time homeowner (well, I will be on Friday), and my husband has tried to explain to me how refinancing works, but it feels more like magic than an actual thing. He's from the mortgage business, so I'm sure he knows what he's talking about, but I just don't get it.
How do you get money out of redoing a loan? How can you use that money to pay for repairs or additions? Is there any reason you wouldn't refinance?
Ok, you’re 5. You borrowed $20 from your mom to open a lemonade stand and she’s charging you $2 in interest every week you haven’t paid her back in full (nice one, mom). But Sally down the street is only paying $1 per week.
You also want to pay $1, so you refinance your loan. Refinancing pays off what’s left of your initial loan, then gives you a new loan with a new interest rate that amounts to $1/week. This is considered a standard “rate/term refinance” because you’re simply changing your interest rate.
Now, here’s where a cash-out option comes in. Let’s say you want to add a bigger, better sign to your lemonade stand that costs $5. You don’t have the whole $5, but you do have a very valuable asset—your lemonade stand, which is now worth $30. (Lemonade stands, so hot right now.) So you decide to do a cash-out refinance.
A cash-out refinance works just like your rate/term refinance in that you get a new interest rate, but you also get to take cash out. Let’s say you still owe $10 on your original loan. The new loan you get when you refinance will pay off that $10, plus add an additional $5 to use for your sign upgrade.
Of course, the amount you pay every week may go up, but your interest rate will be lower than what you’d pay if you took out a personal loan that wasn’t connected to your lemonade stand.
My wife and I have been thinking of refinancing our home (in an attempt to lower our payments, along with other bills) and we're not sure where to start or what the benefits in doing this would be.
I've only heard that it's useful for getting your interest rate down, but is there anything else that can be done with refinancing?
Want to lower your payment? A rate/term refinance (the most common) is your best bet to get a lower rate and pay less per month. Other refinancing options can get you cash out, eliminate mortgage insurance, make changes to your escrow collection, and more. Whatever your savings goals, we’ve got you.
Chat with a loan advisor who can show you all of your best loan options.
So I'm currently in the process of refinancing from a 30-year to a 15-year going from 4.25 to ideally 3% my question is should I refinance now or should I wait to see how low rates will drop I'm seeing right now 2.8% does anybody think these rates will go lower and also do you have any tips for where I could go to get the best rate? I've gotten rates from now for lenders and there's a lot of shady business that goes into this where they promised you one rate and then they try to charge you fees which bring the APR up but they do it in a shady way.
Without going full fortune-teller mode, we can accurately say rates now (Fall 2021) are at all-time lows, and they have been for some time. And that’s a great reason to refinance. They could go lower, or they could go higher, but moving from a 4.25% to a 3% is a huge leap. Plus, you can always refinance again in the future.
To avoid the bait and switch, make sure you’re requesting “Locked” loan estimates from lenders. If they’re “Floating,” then the rate and fees could be different when the interest rate is locked, or promised.
We purchased a home with a conventional 30-year mortgage about 2 years ago. With interest rates so low, we'd like to refinance..preferably with the same bank. Are there closing costs associated with a refinance such as underwriter fees, assessments, etc? Thanks in advance!
Yes. There are fees associated with any refinance—some you have control over, and some you don’t. As with any refinance, state and government charges will be standard for your area or transaction type.
When you refinance once at Lower.com, you get Free Refi for Life. That means you can refinance again and we’ll cover all of the lender-based costs, like application, origination, and underwriting fees. Pretty cool, right?
You can learn more about Free Refi for Life at lower.com/refinance.