What Is A Mortgage Loan Refinance?
February 3rd, 2012 | 
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What Is A Mortgage Home Loan Refinance?
A very simple question, but many homeowners don’t know what a mortgage loan refinance is.
In a nut shell, a mortgage loan refinance is when a homeowner will borrow money to remortgage or refinance their existing mortgage home loan.
Why do homeowners do this?
Homeowners will refinance their mortgage home loans because they want to lower their mortgage rate and lower their mortgage payment. They can save thousands of dollars doing this.
Or they may want to reduce their mortgage loan term from 30 years to 15 years or 10 years. They can also save a boat load of money by reducing the mortgage term.
People also may want to refinance their existing mortgage because they may want to take cash out of their home, which is called a cash out refinance.
Finally, people sometimes refinance or remortgage (which are both the same thing), because they are getting a divorce from their spouse and they want to get the spouse off the existing mortgage loan.
To refinance an existing mortgage home loan – for whatever reason – the homeowner will have to qualify.
So they complete a mortgage application, provide copies of their income and asset documentation, have the credit checked and have the home appraised.
It’s a process similar to the mortgage process that they went through when they got a mortgage loan to buy the home.
A mortgage underwriter underwrites the mortgage loan application and approves (or denies) the application.
Once the mortgage loan application is cleared, a closing date is scheduled and the mortgage loan refinance closes!
The closing for mortgage loan refinance usually take about 45 minutes. The mortgage refinance process itself takes about 30 days to close.
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