Before you make the decision to refinance your mortgage, complete the important checklist below.

​

 

Define Refinance Goal

Do you want to shorten your loan term? Lower your interest rate or monthly mortgage payment? Withdraw cash for a home renovation project? Defining your refinance goal will determine what type of loan refinance you will need.

​

Locate Relevant Documents
A mortgage refinance is a new loan origination, and just like when you financed your original purchase you are going to need all of your important documents. Get your bank statements, W2s, pay stubs, government-issued identification, and other documents together ahead of time to streamline the process.

​

Compare the Alternatives
For example, if you are interested in a cash-out refinance to pay down other debt, explore alternative options and like payment plans with your credit cards or a student loan refinance and weigh your options before settling on a cash-out mortgage refinance.

​

Calculate the Cost to Switch
Since a mortgage refinance is a new loan origination, you will typically have to pay lender fees and closing costs. Meeting with a loan officer ahead of time can help you estimate how much those costs will add up and help you determine if you can afford a mortgage refinance at this time.

​

Calculate the “Break Even” Point
One of the most common reasons to refinance is to lower the monthly mortgage payment or overall cost of the loan. Since a refinance will be a new loan origination, make sure to calculate the “break even” point and determine how long it will take to start saving money with your mortgage refinance.

​

​