Basically, it’s a new loan. We pay off your old loan and give you a new loan.

There are no real estate agents involved, no sellers, no contract deadlines. The process is between you, me, and your closing agent.

So why would you want to do a refinance?

Some examples include: Giving you a loan with a lower interest rate. For example, a 30 year fixed loan for $400,000 at an 8% interest rate will total to $1,056,620.99 over a 30 year term (assuming no extra payments are made). In this same example, a 30 year fixed loan at a 4% interest rate will total $687,478 in payments over the 30 year term (assuming no extra payments are made).

So in the example above, refinancing would save you over $369,142.96 in payments!!!

Another type of refinance involves taking cash out of the equity of your home (this is called a cash out refinance). You don’t need to go through the original lender you went through to refinance. It’s worth shopping around to make sure you get the best deal possibly.

A cash out refinance can be used for home improvements, to payoff debts, etc.

Rate and Term Refinance

Simplest way of refinancing. Basically changes interest rate , term or both without any cash outs or advanced money. This has the lowest interest rates and cash out refinances.

Cash Out Refinance

Replacing old mortgage for a new one to get a higher amount. It is when the borrower is using his home mortgage to extend loan terms and to get some cash.