Refinancing
Refinancing, explained plainly.
I’ll look for options that could lower your monthly payments, and walk you through what each one would mean for you.
How refinancing works
What refinancing means
Refinancing means replacing your current mortgage with a new one, either with the lender you have now or a different one. Often it’s for a larger amount, so you can use some of the equity you’ve built up in your home.
Equity is the part of your home you own outright: what it’s worth today, minus what you still owe on it.
When you refinance, lenders limit how much of your home’s value you can borrow against. I’ll let you know what that could mean for your home.
Your reasons
Why people refinance
The first thing I’ll ask is why you’d like to refinance. Everyone’s reasons are a little different. Here are three I can help with.
Paying off other debts
If you’re paying off debts like credit cards or a car loan, you may be able to bring them into your mortgage, so you have one payment to manage instead of several.
Renovating your home
If your home needs work, like a new roof or a new kitchen, some of your equity could help pay for it. Depending on how much you need, it may make sense to look at a refinance based on what your home will be worth once the work is done, instead of what it’s worth today. Lenders call that its as-complete value.
Buying a rental or your next home
The equity in your home could help with the down payment on a rental or your next home.
I had a great experience working with Sobhi my mortgage broker. He was knowledgeable, responsive, and took the time to explain every step of the process clearly. He worked hard to find the best options for my situation and made what could have been a stressful process feel smooth and manageable. I really appreciated hi honesty, patience, and attention to detail. I would absolutely recommend him to anyone looking for reliable and professional mortgage advice
Soubhi made my first home-buying experience much easier! He was always quick to respond, knowledgeable, and took the time to make sure I knew about all the local rebates and programs available to me. He genuinely had my best interest at heart and worked hard to get me the best rate possible in some questionable times for the market. An absolute pleasure to work with—Highly recommend!
Working with Soubhi is an absolute pleasure. He is incredibly knowledgeable and walks you through every step of the mortgage process. He is professional and quick to respond. I would highly recommend Soubhi to anyone looking for expert advice and exceptional service in securing a mortgage.
Soubhi Abla is someone I was lucky enough to do business with who made my journey of buying my first house an effortless purchase. Abla took his time to send me all the documents I needed to purchase my house and communicated all the details I needed to know. I would recommend Soubhi to anyone that is interested in buying a property as he made my experience feel like an opportunity to grow as a person.
Choosing Soubi was an excellent choice. Easy to work with, professional, and just an overall pleasant person. Would highly recommend if you need assistance in purchasing your new home or property. I look forward to working with him in the future. Matthew
He is incredibly knowledgeable and walks you through every step of the mortgage process. He is professional and quick to respond.
Before you decide
What I’d want you to know first
I don’t want surprises, and neither do you. Refinancing can help, and it can also come with costs, so here are two things worth knowing before you decide.
Your amortization may get longer
Your amortization is the total number of years it takes to pay off your mortgage completely. Lower monthly payments sometimes come from stretching those years out, which means paying for longer and usually paying more interest overall. Debts you bring into your mortgage are paid off over those years too, so they can end up costing more in interest over time.
There may be a prepayment penalty
Your term is how long your current rate and agreement with your lender last, and it’s usually shorter than your amortization. If you refinance before your term is up, your lender may charge a prepayment penalty, which is a fee for ending your mortgage early. How much it is depends on your lender and your mortgage. I’ll help you find out what yours would be, for example by asking your lender.
I’ll go over what refinancing could save you and what it could cost, and I’ll explain it as many times as it takes.
Whenever you’re ready.
Start your application, or ask me a question about refinancing first. Either way, you’ll be working with me from the very first message.
Or call or text me at 902-213-8844.