Refinance FAQ E-mail
Get all the FAQs on refinancing such as "Why Should I Refinance My Mortgage?" and "What Closing Costs Are Involved In Refinancing?". Get all the FAQs here in our online refinance FAQ. 

Why should I refinance my mortgage?

In general, there are three main reasons to refinance your mortgage:

  1. Get your monthly payments lower.
  2. Get your mortgage paid off faster.
  3. Get to take cash out of your property.

The term of your mortgage and Interest rates can affect your decision. With our refinance analysis tool you can get help to decide if now is the right time to refinance.



What costs are involved in refinancing?

Costs can be separated into three different categories:

  1. Lender fees. Fees may include origination, application, points, appraisal, and credit report.
  2. Third-party fees. These fees vary according to state and the specific company you choose to close your loan. They may include fees for closing, title insurance, title exam, and recording.
  3. Pre-paid items. These are items taken at the time of closing but are not usually considered costs. These include items you paid for whether or not you refinance (for example taxes, interest, and hazard insurance).

All together, closing costs usually can range from 2% to 3% of your loan amount. You will be given an estimate of your closing costs shortly after your application has been received. Any prepayment penalty on a loan being refinanced will raise the amount needed to close. If there is enough equity in the home, your closing costs may be included in your new loan amount to keep your out-of-pocket costs as low as possible. If you change the product type or loan amount the estimated closing costs will change. If this should occur, be sure to ask how the changes will effect your closing costs.

Be careful of lenders who estimate low to get your business.



How much equity is needed to refinance?

At least 10% equity in your home by most refinance loan programs is required to refinance. There are also 100% L.T.V. Programs available for qualified borrowers.



Can I combine more then one loan when I refinance?

You can refinance any number of loans as long as there is available equity. (Note: You may be subject to prepayment penalties if your loans are paid off too quickly)



What if my home is for sale?

As long as your home has not been for sale within the last six months you can refinance.



How can I lock an interest rate?

You have to complete a full mortgage application if you want to lock in a rate. After you submit a prequalification online, a Trump Mortgage, LLC mortgage consultant will call you to discuss your mortgage options. They will also help you complete the application and lock in a rate when you’re ready.



What happens at closing?

The refinance closing is done the same way your loan was closed when you originally purchased your property. At closing, after your loan is approved, you'll be getting copies of documents you'll need to sign. The closing takes place at the office of a closing agent or it may involve a meeting where all related parties are present.

 
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