When rates drop significantly lower (a whole percent or more) than what you’re paying now, it may be time to refinance your residential loan. Of course, the savings over time needs to be large enough to cover the costs of refinancing (loan origination fees, etc.). An Ark Mortgage Advisor can help you calculate your potential savings at today’s rates.
But there’s another great reason to refinance your residential property. Homes typically grow in value each year. And your equity — the portion of your home that you own outright — grows as you continue to pay off your mortgage. The difference between the original purchase price of your home and its current market value is untapped equity that you might be able to use for other purposes.
We call it a “cash-out re-fi” and it goes like this: You refinance your home (or investment property or vacation home) for more than you owe. You can use the extra cash for any number of things: home remodeling, starting a business, a college education. You may also get a better interest rate.
Talk to your Ark Mortgage Advisor for ideas.
How much can I save by refinancing my mortgage?
The amount you can save will vary, since everyone’s mortgage and reason for refinancing is unique. Factors such as the term of your current loan, your income, credit score, size of loan and market conditions all come into play. Use our Mortgage Calculator to estimate your savings or speak with one of our Personal Mortgage Advisors.
How much will my monthly payment be?
Calculate your potential new monthly mortgage payment in seconds by using the calculator accompanying this section.
How long is the mortgage refinancing process?
Many refinances can be completed from receipt of complete application (including all requested documents) to close in 21 days or less and some in as short as 10 days, depending on the situation.
Am I required to refinance with my current mortgage lender?
No. The decision to refinance your home is an important one and you shouldn’t automatically assume that your original lender is the best mortgage company to work with for the refinance. Weigh your options and work with a lender that puts your needs first and is best able to help you accomplish your refinancing goals.
Why Refinance instead of Home Equity Loan?
While it’s true that a home equity loan might be less expensive initially since it doesn’t involve closing costs, in the long run it can cost you more because the interest rate is uncapped and can rise without notice. Also, some companies can discontinue those loans without notice. A refinance might be your safest and most predictable course of action, especially since all closing costs are added to the cost of the loan. No upfront payment is required other than the cost of the appraisal, which is reimbursed to previous Ark borrowers, thanks to our Lifetime Guarantee.
Ark Home Mortgage Advisors are not salespeople. They’re advocates. Our business is based on getting our clients into loans that work for them for the long term, that help them achieve the dream of home ownership and reach their financial goals.
To do that, we spend the time it takes to find out about your financial goals before we recommend a particular product or way of structuring a loan. We help you figure out what kind of payment will be most comfortable for you and will fit your budget.
As mortgage bankers, we also give you ideas that most brokers never consider. You may be interested in reserving cash for other projects, or maximizing your tax benefits. You may be interested in ensuring the term of your loan coincides with the year you’ve decided to become debt-free.
Making sure you get the right mortgage takes asking the right questions. That’s what we do.
Three more reasons to refinancing with Ark
- Self-Employed Borrowers Welcome
Most brokers are happiest with the easiest applications — the ones with a single employer. We’re great with those, too, but we really shine with the challenge of helping self-employed people get great loans.
- Lifetime Guarantee:
When you finance a home through Ark, we’ll waive the application and commitment fees and for any refinance of that property, and even reimburse appraisal fees — a total savings of up to $2,500!
- Multi-Property Discount:
Refinance several properties through Ark simultaneously (even if the original loans were handled elsewhere) and we’ll only charge you the application and commitment fees for the first property.
How much will my monthly payment be?
Calculate your potential new monthly mortgage payment in seconds with this handy calculator so you can ensure you have enough money left over each month to cover your other expenses. Choose your rate and term—you might be surprised to see how affordable it can be to own your home sooner than you thought possible. Note how much interest you’ll pay over the life of the loan, and then enter prepayment amounts to calculate their impact on your overall expenditure.