Why Should You Refinance?
Discover the benefits and opportunities of refinancing your mortgage
Lower Interest Rate
Reduce your monthly payment and save thousands over the life of your loan by securing a lower rate.
Access Home Equity
Cash-out refinancing lets you tap into your home's equity for renovations, investments, or debt consolidation.
Change Loan Terms
Switch from an adjustable to fixed rate, or shorten your loan term to build equity faster.
Remove PMI
If your home value has increased, refinancing can help eliminate private mortgage insurance.
The Refinance Process
Your step-by-step journey to a better mortgage
Initial Consultation
Discuss your goals, review current mortgage, and explore refinance options with our experts.
Application & Documentation
Complete your application and provide necessary financial documents.
Appraisal & Underwriting
Your home is appraised and your application goes through underwriting review.
Closing
Sign final documents and your new loan pays off the old mortgage.
Types of Refinancing
Choose the right refinance option for your situation
Rate-and-Term Refinance
Replace your existing mortgage with a new one at a better interest rate or different term length.
Benefits
- •Lower monthly payments
- •Shorter loan term options
- •Switch from ARM to fixed rate
Requirements
- •Good credit score (620+)
- •Stable income
- •Home equity of 20%+
Refinance Requirements
What you'll need to qualify for refinancing
Credit & Income
- ✓Credit score of 620+ (740+ for best rates)
- ✓Stable employment history (2+ years)
- ✓Debt-to-income ratio under 43%
- ✓Sufficient income to qualify
Property Requirements
- ✓Current on mortgage payments
- ✓Sufficient home equity (usually 20%+)
- ✓Property in good condition
- ✓Valid homeowners insurance
Documentation Needed
- ✓Recent pay stubs (30 days)
- ✓W-2s or tax returns (2 years)
- ✓Bank statements (2 months)
- ✓Current mortgage statement
- ✓Homeowners insurance info
- ✓ID and Social Security card
Pro Tip: Gather your documents early to speed up the refinance process. SRK CAPITAL can provide a personalized checklist based on your specific situation.
Refinance Costs & Savings
Understanding the financial impact of refinancing
Typical Closing Costs
Processing Fee
$895Processing your loan application
Appraisal Fee
$400 - $750Professional home valuation
Title Insurance
$500 - $2,500Protects against title issues
Origination Fee
- 1.5% - 1.5%Lender Rate fee
Recording Fees
$50 - $450County recording charges
Total Closing Costs: Typically 2-5% of loan amount
Potential Monthly Savings
Current Rate
New Rate
Old Payment
New Payment
Monthly Savings
$257
$3,084 saved per year
Refinancing FAQs
Answers to your most common questions
The best time to refinance is when interest rates drop at least 0.5-1% below your current rate, you plan to stay in your home long enough to recoup closing costs, or your credit score has significantly improved.
Most lenders require at least 20% equity for conventional refinancing to avoid PMI. However, government-backed loans like FHA allow refinancing with as little as 3.5% equity.
The refinancing process typically takes 30-45 days from application to closing. FHA and VA streamline refinances can be faster, sometimes closing in 2-3 weeks.
Yes, but your options may be limited. FHA loans accept scores as low as 580, and some lenders offer programs for scores down to 620. However, better credit scores qualify for better rates.
Refinancing may cause a temporary dip of 5-10 points due to the credit inquiry and new account. However, making on-time payments on your new loan will help your score recover and potentially improve over time.
Calculate your break-even point by dividing closing costs by monthly savings. If you'll move before reaching this point, refinancing may not be worthwhile unless you're doing a no-closing-cost refinance.
Have more questions about refinancing?
Contact Our Expert TeamReady to Refinance?
Let SRK CAPITAL help you save money and achieve your financial goals
Get a personalized refinance analysis and see how much you could save
30-45
Days to Close
$250+
Average Monthly Savings
100%
Free Analysis