Refinancing a mortgage means you are paying off your current home loan with a new loan. Whether looking for a lower monthly payment or to tap into your home equity to help pay for renovations or consolidate debt, homeowners refinance their home loans for a number of reasons. While refinancing your mortgage isn’t a miniscule task, working with an independent mortgage broker can help you follow the process to ensure you complete your refinance properly and efficiently.  

Before you jump into refinancing your mortgage, let’s take a look at the five main steps you should follow to ensure you get the loan that best suits your current financial situation. 

1. Determine Why You Want to Refinance

What are you hoping to accomplish with your refinance? Do you want to change your mortgage from a 30-year-fixed-rate to a 15-year-fixed rate? Are you looking to reduce your monthly payments? Or, perhaps you’re hoping to remove mortgage insurance. Whatever the reason, it’s important to have your goals set before you begin the mortgage refinance process.

2. Shop for the Best Rate 

If you want to find the best mortgage rate, work with an independent mortgage broker. They will shop hundreds of loan options to find the best possible rate available for your financial situation. You can use Mortgage Matchup to help find a local broker in your area who will work with you throughout the entire process of refinancing your loan.

3. Submit Your Application 

Paperwork, paperwork, paperwork! Coordinate closely with your local mortgage broker to ensure you have all the proper documents available and filled out to officially submit your loan application. 

4. Lock in an Interest Rate

Locking in your interest rate is a must. It ensures your interest rate can’t be changed for a certain period of time. Your broker will take care of this step for you, and you’ll again work closely with them to close the loan before that locked rate expires. 

5. Close on the Loan 

Closing on the loan will feel similar to when you closed on your home, except this time, you’ll be walking away with only a new loan instead of a new house. The good news is, this is the final step in the process.  Once you close on the loan and pay the closing costs, you’ll be all set. 

Remember: your local independent mortgage broker is a home loan expert who can help guide you through the refinance process. If you’re unsure if refinancing is right for you, connecting with a mortgage broker will give you needed clarity and help you determine next steps.

Ready for a simple, painless refinance experience? Find your local mortgage broker today to get the process started.