Steps to Refinance Your Mortgage

Refinancing your mortgage can help you secure a lower interest rate, reduce monthly payments, or tap into home equity. However, to maximize your savings and avoid unnecessary costs, it’s important to follow the right steps.

1. Assess Your Goals: Determine why you’re refinancing (e.g., lower payments, cash access).
2. Check Your Credit: Aim for a score of 620+ for conventional loans (higher for the best rates).
3. Shop Lenders: Compare rates, fees, and terms from banks, credit unions, and online lenders.
4. Get a Loan Estimate: Review the breakdown of costs and terms.
5. Lock Your Rate: Secure a rate if market conditions are favorable.
6. Underwriting & Appraisal: The lender verifies your finances and assesses your home’s value.
7. Close the Loan: Sign paperwork and pay closing costs.