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Refinance

Refinance

If you own a home, you know about monthly mortgage payments – a sizeable sum with considerable impact on your month-to-month finances. You’re also likely used to balancing this with your other payments, savings and debts. As one of your largest investments, refinancing your home can provide you with many options and benefits.

Refinancing means that you pay off one loan with the proceeds from a new loan using the same property as security. Some people refinance to take advantage of lower interest rates, while others may do so to get money for a home improvement project. Whatever your goal, you’ll want to make sure the home refinance option you choose fits into your larger financial plan and will truly benefit you in the long run.

Understanding your options is the first step to making an informed decision.

Lower My Monthly Payment

Refinancing to have a little extra cash each month – to apply to high-interest debts or save for the long term – is appealing. But how you go about lowering your payment, as well as your unique finanical situation, is important. We can help guide you to the refinance option that works for you.

Shortern My Repayment Period

Is owning your home sooner a worthy tradeoff for higher monthly payments? Does paying off your home loan before other debts make financial sense? Let our team of loan consultants help you weigh some of the pros and cons.

Reduce My Interest Rate

In general, the lower the interest rate the less you will pay on your loan overall. But many factors – your credit score, market conditions and mortgage type – go into determining the interest rate that applies to your home refinance loan. How low can you go? We’ll help you determine if refinancing for a reduced interest rate will work for you.

Change My Loan Options

At any given time, a variety of refinancing options may be available for your home – from loans that consolidate debt to those that stabilize your interest rate. How do you know if one will work better than your current mortgage loan? We have the tools and resources to help you evaluate.

Lower My Monthly Payment

When interest rates fall, many people think about their mortgage – and the possibility of lowering their monthly payments through refinancing that mortgage.1

Navigating the Process

Refinancing a mortgage involves many of the same steps you encountered when you purchased your home: gathering information about your income and debt obligations, applying for a loan pre-approval decision, obtaining an appraisal. Plus there may be a few new steps involved – if you’re consolidating your home loan with other debts, for instance.

But it all begins with a very important first phase: evaluating and deciding on a loan product that works for you.

Weighing the Pros and Cons

Extra cash every month is an appealing prospect. But you should first make sure the new loan will live up to your expectations. Will the decrease in the interest rate turn out to be large enough to make financial sense? Will the new length of the loan, its costs and fees outweigh any potential savings? This guide will help you arrive at the best decision for your situation.

Find Out More

1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

The Refinancing Process

Refinancing a mortgage can present a number of potential benefits and, in some cases, reduce your monthly mortgage payments.1

This overview will walk you through what’s involved in refinancing a mortgage loan, with a focus on lowering your monthly payments. If you have questions, an experienced PHH Mortgage loan consultant is available to help you with answers – just call (800) 210-8849.

Decide if Refinancing Is Right for You

Your loan consultant will help you determine if now is an appropriate time for you to refinance. You'll simply answer a few questions about your current loan and the new loan you are considering, and we'll calculate your potential savings. You’ll be asked for your present loan balance, interest rate, principal and interest payment, and the estimated value of your home – so be sure to have those figures ready. Also think about other cost factors to add in, such as loan origination and appraisal costs.

In addition, it might be helpful to compare the benefits of refinancing to other options that may help you achieve your goals.

Get Approved

Once you’ve determined that refinancing works for your financial situation, it’s time to apply. Again, having all of your important information at your fingertips can help make the process run more smoothly, so make sure that you have:

  • Proof of income
  • Bank and investment information
  • Social Security number

Additionally, you will be asked for permission to run your credit report. Again, submitting complete, accurate and legible documentation helps to speed the process – and we can help keep you on track.  For more information, or to get your refinance process started, call an experienced PHH Mortgage loan consultant at (800) 210-8849.

Close on Your Mortgage Refinance

Before the closing, we'll arrange for an appraisal of your property. Our loan consultant will provide you with a list of the documents to bring to the closing, as well as an estimate of any closing costs. To get a general idea of the documents you'll need, read the Refinance Checklist.

Once the papers are signed and the fees are paid you’ll be on your way to lower monthly payments, starting with your first installment.

Get Started Now

There are many considerations involved in refinancing a mortgage loan to lower your monthly payments. Get the facts about the specific refinancing advantages available for you. Our PHH Mortgage loan consultant can help you navigate the details and requirements. Call us at (800) 210-8849.


1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

Benefits of Lowering Your Monthly Payment

Whether through reducing your interest rate or extending the length of your loan, refinancing your mortgage to get lower monthly payments1 can offer a variety of benefits you may not have considered.

  • Get some extra in the short term: Lowering monthly payments gives you a little more money each month that can be used for a variety of daily expenses – retirement savings, a college fund, a vacation, home improvements and more.
  • Save more in the long term: If you are lowering your monthly payments by lowering your interest rate, you may save money each month and over the life of your loan – but remember that your interest rate is only part of the story. You should verify that the overall savings outweigh the refinancing costs.
  • Apply savings to debts: You can also apply what you save each month to the payment of other debts – either directly through the increased money you have available or through a debt consolidation loan.
  • Adjust or stabilize your rate: Extra cash flow is just one potential benefit to mortgage refinancing. Depending on your financial situation and loan product, you might be able to switch to a longer term or different type of mortgage – for instance, from an adjustable rate to a fixed term loan.
  • Gain related benefits: If your property’s title insurance policy was recently issued, you might qualify for a reduced reissue or refinance rate. Additionally, depending on your loan type, how much you’ve paid off and payment history, you might be able to drop the cost of your private mortgage insurance (PMI).

If you’d like to determine whether refinancing for a lower rate will work for you, talk with one of our experienced loan consultants at (800) 210-8849.

 

1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

Careful Considerations

The prospect of lower mortgage payments1 – and greater monthly cash flow – is appealing. But will the savings from a new loan equal the cost of refinancing? Here are some important factors to consider.

Breaking Even

One of the first things you need to consider before refinancing is your "break-even point" – when the closing costs related to the refinance are finally repaid by your monthly savings. Why is this important? If you don't think you'll be in your house long enough to pay off the closing costs, perhaps you are considering selling in the near future, then refinancing may not be a good option.

Other factors that will determine if the refinancing option makes monetary sense – and how much you'll repay – include:

  • Loan origination and application fees
  • Any penalty for early payment on your current mortgage
  • Standard settlement charges, including fees for credit reports, title searches and insurance fees, and appraisals

Extending the Term

You can also lower your monthly payments by extending the term (i.e., length of repayment period) of your mortgage, but be aware that interest rates may be higher with a longer repayment period.

If you plan to stay in your home for a longer period of time, extending the term may not be as big of a consideration because you’ll have time to pay down the principal over an extended time. However, it could be a crucial factor in your decision if you plan on moving in the near future. 


1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

How Low Can You Go?

When refinancing a mortgage to lower your monthly payments1, it is important to understand what determines the terms and amount of both. Typically, monthly mortgage payments consist of four parts: principal, interest, taxes and insurance. You may be most familiar with the interest – the percentage of the loan amount that you’re changed for borrowing money. Your interest rate is based on market conditions, your credit score, down payment and mortgage type, and a decrease of at least 1% in the rate is typically required to be cost effective when compared to the lower monthly payment.

But there are other factors that play a role as well, including:

  • Discount points: Points, which each equal 1% of your mortgage amount, can be purchased to lower your rate; this option may make sense if you’re planning to stay in your home for an extended period of time.
  • Private mortgage insurance (PMI): If your original down payment on your property was less than 20%, there’s a good possibility you’re paying PMI. If you have a strong history of timely monthly payments and enough equity built up in your property, refinancing may give you the opportunity to lower or eliminate the amount of any PMI payment.
  • The loan term: A longer loan term often results in lower monthly payments. But be aware that you may end up paying more interest over the life of the loan, since repayment of the principal is now extended over a longer period of time.

Know Your Options                                  

For more on ways to lower your monthly payment and whether it’s a good choice for you, contact our loan consultants at (800) 210-8849 to find out which options you may qualify for and how to make them work. 

 

1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

Debt Consolidation

A home is often an individual or family’s largest asset. Because of this – and because mortgage interest rates are often lower than rates on items like credit cards – paying off debt is a big reason why people refinance their mortgages.

A debt consolidation loan is a new loan with a balance that’s larger than that of your existing mortgage. You use the cash difference to pay off other debts – typically those with higher interest rates, such as credit card balances.

Is debt consolidation the right choice for you?

First, take a look at the outstanding debts you want to pay off: credit card payments, car loans or student loans, for example. Consider their current balances, minimum payments and interest rates. Then compare a mortgage refinance against other options for debt consolidation, such as a personal loan. Throughout the process, it’s important to remember that debt consolidation doesn’t lower your overall amount of debt; it simply rolls all loan balances up into a single loan. You should also consider that the debts that you may be consolidating/paying off are typically not secured by your home. If you consolidate those debts with a debt consolidation mortgage loan and you fail to meet the repayment terms of your new mortgage, you could lose your home.

Reduce My Interest Rate

Taking advantage of a lower interest rate on your existing mortgage with a new loan could save you large sums of money for years to come – and give you more cash now for purchases or other debts. That’s why, when interest rates fall, many people consider refinancing their mortgage.

Navigating the Process

Refinancing a mortgage involves many of the same steps you took in financing the original mortgage you took when you purchased your home, although it’s typically faster and with fewer required steps.

If today’s interest rates are lower than what you are currently paying every month, it’s worth exploring your options with one of our PHH Mortgage loan consultants. Call today at (800) 210-8849 and we’ll help you understand what’s involved with refinancing and determine whether pursuing a lower rate is something you want to consider. First, consider the information in this overview as a guide to help you gain an understanding of what’s involved.

Find Out More

The Refinancing Process

Homeowners typically refinance their mortgages with a specific goal in mind, ranging from reducing monthly mortgage payments1 to financing a long-awaited home project. You may also want to refinance to save money overall by shortening the term of your loan and lowering your interest rate.

This overview will walk you through what’s involved in refinancing a mortgage loan, with a focus on reducing your interest rate.

Start with Numbers to Guide Your Decision 

An experienced PHH Mortgage loan consultant is available to help you – just call (800) 210-8849 to begin the process. Your loan consultant will ask you a few questions to see if the numbers add up to enough savings to work in your favor. You'll be asked for your current loan balance, interest rate, principal and interest payment, and the estimated value of your home – so make sure to have those figures ready. 

If you see the potential to save with a lower rate, it may be time to take action.  

Get Approved 

Once you’ve determined that refinancing works for your financial situation, it’s time to apply. Again, having all of your important information at your fingertips can help make the process run more smoothly, so make sure that you have:

  • Proof of income
  • Bank and investment information
  • Social Security number

Additionally, you will also be asked for permission to run your credit report. Again, submitting complete, accurate and legible documentation helps to speed the process – and we can help keep you on track.  For more information, or to get your refinance process started, call an experienced PHH Mortgage loan consultant at (800) 210-8849.

Close on Your Refinance

Prior to closing, we’ll arrange for an appraisal of your property. We'll give you a list of the documents you will need, which will vary based on your location and loan program. Our Refinance Checklist also gives you a general idea of the documents to bring along. Our loan consultant will also provide you with an estimated settlement statement, which approximates the closing costs to expect. 

Get Started Now

Our PHH Mortgage loan consultant will help you understand the entire process of refinancing to lower your rate. As always, we'll be with you every step of the way. 

To learn more, see our Refinancing FAQs, and for a quick review of the steps to take, use our refinance checklist. If you have more questions or would like to discuss refinancing with an experienced loan consultant, call (800) 210-8849.


1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

Benefits of Reducing Your Interest

Reducing your interest rate to capitalize on more favorable market conditions can offer you both short- and long-term benefits.

  • Lower monthly payments: Typically, refinancing to an interest rate that’s lower than your current rate by at least 1% will translate to noticeable savings on your monthly mortgage payments. 
  • Shorter loan terms: Lower interest rates may enable you to change to a shorter-term mortgage. As a result, you can pay down the principal balance and build equity faster – and you may pay less total interest. 
  • Rate stability: If you currently have a variable interest rate, you may be able to lock in to a more stable fixed rate mortgage that gives you consistency over time – especially good news if the stable fixed rate is a low one.

To help decide if refinancing for a lower rate will work for you, call an experienced loan consultant at (800) 210-8849.

Careful Considerations

Lower monthly payments1 – and potential savings overall – may seem attractive. However, when refinancing your mortgage to reduce your interest rate it is critical to consider all of the fees and closing costs involved. 

Breaking Even

Refinancing costs and fees have the potential to add up to 2% of the total new loan amount, so it’s important to ask yourself if the savings from the new loan will be equal to or more than the cost of refinancing.

Also note that refinancing costs vary from state to state and can include:

  • A loan origination charge, along with fees for application and processing.
  • Points that can be purchased to lower your interest rate even more (each “point” is 1% of your loan amount). 
  • Any penalty for early payment on your current mortgage.
  • Standard settlement charges, including fees for credit reports, title searches and insurance fees, and appraisals. 

Be Aware of Penalties

Your current loan may also include penalty fees for early payments, which could add to your refinance costs. Contact an experienced loan consultant at (800) 210-8849 to prepare for all the scenarios.


1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan. 

How Low Can You Go?

 The interest rate you pay on your mortgage depends on a number of factors including:

  • Current market conditions 
  • Your credit score
  • Your down payment amount
  • Your type of mortgage

The bottom line is that the better your financial shape, the better chance you will have of securing the lowest rate in a refinance. To understand your “fiscal fitness,” start by looking at yourself as a lender would and consider your:

  • Credit score: Don’t just look at your score, but the history that goes into calculating it – things like late payments, the length of your credit history and credit inquiries. Where possible, address and correct any issues to help improve your score.
  • Loan-to-Value Ratio (LTV): The LTV is the difference between your requested loan amount and your home’s appraised value. A higher LTV often means a higher interest rate. 
  • Debt-to-Income Ratio: This ratio is a measurement of your overall debt – credit cards, auto loans, etc. – against how much you earn. As with LTV, you want this number to be as low as possible, as a lender will consider it when determining if you can get the best interest rate and, most importantly, a mortgage.

Know Your Options

There are many different ways to reduce your interest rate, including choices of loan types and terms. Contact our loan consultant at (800) 210-8849 to find out which options you may qualify for and how to make them work best for you. 

Shorten My Repayment Period

Shortening the term of your mortgage can help you own your home sooner and save in interest costs. But is it the choice that makes sense for you?

Navigating the Process

Refinancing a mortgage involves many of the same steps you encountered when you purchased your home: gathering and completing necessary information about your income and debt obligations, obtaining an appraisal and preparing for closing. But the first step is evaluating the commitments of a shorter-term loan against your existing financial plans and goals.

Weighing the pros and cons

The idea of owning your home sooner has great appeal, but depending on your situation the extra monthly amount could add up to about the same as a car payment. Will the outlay be worth the benefits? What other types of benefits can you expect?

Even though you may get a shorter loan term, it’s not a short-term agreement when you are considering 15 or 20 years. What kind of impact will this decision have on your long-term financial goals? This guide can help you weigh this timely decision.

Find Out More

Refinancing Process

Refinancing to shorten your mortgage term presents a few potential benefits. You can own your home sooner and reduce the interest costs that you would pay over the life of the loan. But it is also likely to mean higher monthly payments. 

This overview walks through what’s involved, with a focus on the length of your loan. If you have questions, an experienced PHH Mortgage loan consultant is available to help you with answers – just call (800) 210-8849.

Use Numbers to Guide Your Decision

A good place to start the process is with a side-by-side comparison of different loan terms. For many, seeing the difference in the overall amount of interest paid is immediately striking. You can use a refinance calculator to get a quick visualization and to help determine if now is a good time to refinance. Or an experienced loan consultant is available to help you – just call (800) 210-8849 to begin the process. Your loan consultant will ask you a few questions to see if the numbers add up to enough savings to work in your favor. You'll be asked for your current loan balance, interest rate, principal and interest payment, and the estimated value of your home – so make sure to have those figures ready.

In addition, it might be helpful to compare the benefits of refinancing to other options that may help you achieve your goals. Some use the strategy of paying off a loan early by simply paying more towards their monthly principal payment or making extra payments (in addition to scheduled payments) as an alternative to refinancing.

A key step when considering a change to your repayment period is to check your existing loan: Does it have a penalty for early repayment? How much? It’s possible this could diminish any potential benefits of early payoff, so do your research.

Get Approved

Once you’ve determined that refinancing works for your financial situation, it’s time to apply. Again, having all of your important information readily available can help make the process run more smoothly, so make sure that you have:

  • Proof of income
  • Bank and investment information
  • Social Security number

For more information, or to get your refinance process started, call an experienced PHH Mortgage loan consultant at (800) 210-8849.

Close on Your Refinance

As we work toward your closing, we'll arrange for an appraisal of your property. You’ll receive a list of the documents to bring to the closing, as well as an estimate of any closing costs. To get a general idea of the documents you'll need, read the Refinance Checklist.

Get Started Now

There are many considerations involved in refinancing a mortgage loan to shorten your repayment period. Whether you financed your existing mortgage with us or not, we can guide you through the process of refinancing – and make the experience as smooth as possible.

Get the facts about the refinancing advantages available for you. A PHH Mortgage loan consultant can help you navigate the details and requirements. Call us at (800) 210-8849.

Benefits of Shortening My Payment Period

Most people would rather be out of debt sooner than later. However, the benefits of shortening your repayment period may not be as obvious as they seem. Here are some additional benefits to reducing your repayment period that you can factor into your decision.

  • Pay less total interest: In general, the shorter your loan term the less you’ll pay in total interest. Keep in mind that this doesn’t mean your interest rate will be lower – but your total interest payment, once the loan is paid off, will be less. Depending on your loan terms, this savings may be considerable.
  • Lower your overall debt load: Paying off your home loan more quickly can give you added flexibility for expenses down the road, such as retirement or college payments.
  • Force yourself to save: Some homeowners see a shortened repayment period as an opportunity to “force” themselves to put extra money toward their property each month. They regard the reduction in total interest to be part of a savings plan.
  • Leverage your home as an asset sooner: Owning your home quicker can make it available to you as a fully owned asset that can fit into your overall financial planning.
  • Make your retirement plan work better for you: A strategy for some homeowners nearing retirement is to make higher payments on their mortgage while they’re still working, so they won’t face a monthly mortgage payment after retirement.
  • Realize intangible benefits: It may not be a factor you can work through on a calculator, but many people simply want the sense of security that comes from home ownership as soon as possible. This is a strong motivator, especially when the calculations support this goal.

Don’t overlook another potential savings area: Private Mortgage Insurance (PMI). If you home’s current market value has increased and you can reduce your loan-to-value ratio below the lender’s threshold for requiring PMI, this could allow for a monthly savings.

Ready to run the numbers? An experienced loan consultant can also discuss benefits and factors to consider whether reducing your repayment period will work for you. Call (800) 210-8849.

Careful Considerations

The idea of paying less in total interest and owning your home sooner is appealing. But will refinancing to shorten your term impact your overall financial plans in a way that works for you?

Breaking Even

Refinancing costs and fees have the potential to add up to 2% of the total new loan amount, so it’s important to ask yourself if the savings from the new loan will be equal to or more than the cost of refinancing. Consider the overall cost of refinancing and your "break-even point" – when the closing costs related to the refinance are finally repaid by your monthly savings.

Factors that go into the cost of refinancing include:

  • Loan origination and application fees
  • Any penalty for early payment on your current mortgage
  • Standard settlement charges, including fees for credit reports, title searches and insurance fees, and appraisals

Other Considerations

  • Talk over tax implications: Consult your tax specialist for specific guidance on what effects changing your repayment period may have on your tax picture.
  • Determine how much flexibility you need: Reducing your repayment period means putting more money into your property in the near future, which can mean less financial flexibility and cash flow. Get a good, clear grasp of what you need for everyday funds now (plus some extra) and make sure that’s covered before changing your repayment period.
  • Assess your stability: You will need to come up with a larger payment each month. Are you fairly sure you’ll stay in your job or your neighborhood? Do you have enough to keep up payments in an emergency?
  • Think about changes ahead: If you decide to move and sell your home, you may not realize the full amount of savings on interest costs. And if the market changes, your home may not function as an asset in your future financial plans.
  • Compare other ways to save: While applying more money toward the principal may be one way to save over time, you might want to compare what would happen if you put the same amount of money toward a retirement savings plan or another savings instrument.
  • Compare other ways to reduce debt: If your primary motivation is reducing debt, the typical advice is to pay off the most costly debt first. While a mortgage is a huge asset, its interest is typically lower than something like high-interest credit card debt. So be sure to ask yourself if it’s the most effective way to lessen your debt overall.

The Long and Short Of It

When it comes to paying down a mortgage, it’s a matter of balancing personal goals with the basic math.

As you do the math, consider the factors that go into your monthly payment:

  • Principal: This is the amount you pay for your home and the part of the payment that you are seeking to pay down if you shorten your repayment period.
  • Interest rate: This is the percentage of your loan amount charged to borrow the money for your mortgage, and can sometimes be adjusted through a refinance. Typically, the interest rate is lower for a shorter-term mortgage, and reducing the repayment period can result in less total interest paid because you’re borrowing the money, and paying interest on it, for a shorter period of time.
  • Discount points: Points, which each equal 1% of your mortgage amount, can be purchased to lower your rate; this option may make sense if you’re planning to stay in your home for an extended period of time.
  • Private mortgage insurance (PMI): If your original down payment on your property was less than 20%, there’s a good possibility you’re paying PMI. If you have a strong history of timely monthly payments and enough equity built up in your property, refinancing may give you the opportunity to lower or eliminate the amount of any PMI payment

Know Your Options

Figuring out which refinancing option works for you can be a challenge. Contact our experienced loan consultants at (800) 210-8849 to find out which options you may qualify for and how to make them work to your advantage.

Change My Loan Options

Lower interest rates are often cited as a reason for refinancing a mortgage – but switching to a different loan type can also carry many benefits.

Understanding the Choices

Refinancing to a different type of mortgage involves many of the same steps involved in obtaining your existing mortgage product: gather information about your income and debt obligations, apply for a loan pre-approval decision and obtain an appraisal. But some mortgages processes may involve a few new steps, as well – if you’re consolidating your mortgage loan with other debts, for instance.

Whatever loan option you choose, the whole process begins with a very important first step: determining the loan type that’s right for your goals and financial situation.

Weighing the Pros and Cons

Before switching to a different type of loan, you first need to make sure the new loan will live up to your expectations. Will the new loan type deliver enough benefits to make financial sense? Is refinancing truly your best option for a goal like home remodeling or paying off debts?

This guide will help you arrive at a loan refinancing option – and decision – that works for you.

Find Out More

The Refinancing Process

Homeowners may refinance for a variety of reasons. It could be in an effort to reduce monthly mortgage payments1, finance a home improvement or remodeling project, or save money overall by shortening the loan term and lowering the interest rate. It could also be to change the type of your existing loan to one that better meets your financial needs.

The refinancing process for changing your loan option is most likely similar to what you experienced when you got your mortgage – though it may be quicker and with fewer steps. This overview will guide you through how it works.

If you have more detailed questions, an experienced PHH Mortgage loan consultant is available to help with answers at (800) 210-8849.

Decide Which Option Is Right for You

A good place to start the process is with a side-by-side comparison of different loan terms. For many, seeing the difference in the overall amount of interest paid is immediately striking. An experienced loan consultant is available to help you – just call (800) 210-8849 to begin the process. Your loan consultant will ask you a few questions to see if the numbers add up to enough savings to work in your favor. You'll be asked for your current loan balance, interest rate, principal and interest payment, and the estimated value of your home – so make sure to have those figures ready.

Depending on your results, a variety of options may be available. You can:

  • Change to a different loan type – for example, from an adjustable rate to a fixed rate mortgage.
  • Shorten the term of your loan – say from 30 to 15 years – if you are looking to own your home sooner and save on interest overall.
  • Take advantage of a lower interest rate, if available, to reduce your monthly mortgage payments.

Get Approved

The next step is to contact us to get a refinance loan decision. Get prepared by gathering the information we'll request: proof of income, bank and investment information, and your Social Security number. We'll also ask for permission to get a credit report. Applying is fast and easy – just call (800) 210-8849 to get started now.

Close on Your New Loan

You’ve run the numbers, evaluated your options, asked informed questions and discovered a new type of loan that will help you meet your financial objectives. Now it’s time to close the deal.

Before the closing, we'll arrange for an appraisal of your property and our loan consultant will provide you with an estimate of your closing costs. To get a general idea of the documents you'll need, see our Refinance Checklist.

Once the papers are signed and the fees are paid, you’ll be on your way to lower monthly payments, starting with your first installment.

Get Started Now

Many factors go into refinancing your mortgage with a different type of loan. For a quick review of the steps to take, use our Refinance Checklist and review our Refinancing FAQs.

For more information about the specific refinancing advantages available to you, call one of our experienced PHH Mortgage loan consultants. We’ll help you understand the process every step of the way.

 

1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.

Adjustable vs. Fixed Rate Mortgage

What’s the difference between adjustable rate mortgages and fixed rate mortgages and, most important, which one will work better for you?

Understanding the difference starts with understanding interest rates, one of the four parts of your monthly mortgage payment. (The other three are principal, taxes and insurance.)

Why Choose Fixed Rate?

With a fixed rate mortgage, the interest rate remains constant throughout the life of the loan. With an adjustable rate mortgage, often known as an ARM, the rate varies. Homeowners with adjustable rate mortgages will often refinance to fixed rate mortgages, if available, to benefit from a greater degree of certainty.

Why Choose Adjustable Rate?

A homeowner may choose to refinance to an adjustable rate mortgage if they plan on paying off the loan more quickly and are not as concerned with the possibility of future rate increases. Shortening the life of a loan often means spending less in interest payments and paying off the mortgage sooner.

Likewise, because adjustable rate mortgages often will allow people to lock in lower rates upfront, homeowners who aren’t planning to stay in a property for a long period of time may switch to ARMs to take advantage of a lower interest rate.

Careful Considerations

Lower interest rates, shorter terms, extra cash – switching to a different loan can offer many benefits depending on which option you choose. But will the costs of refinancing make the transition worthwhile?

Regardless of your financial situation, you should always add closing costs into your refinancing bottom line. These costs vary from state to state and can include:

  • Loan origination and application fees
  • Any penalty for early payment on your current mortgage
  • Standard settlement charges including fees for credit reports, title searches and insurance fees, and appraisals

With a “no closing cost” loan, it is possible to fold these expenses into the mortgage itself. But be aware that you may pay a higher interest rate in exchange for this option, if available. 

Debt Consolidation

debt consolidation loan is a new loan with a balance that’s larger than that of your existing mortgage. You use the cash difference to pay off other debts – typically those with higher interest rates, such as credit card balances.

Because a home is often a person’s largest asset – and because interest rates on mortgages are often much lower than on things like credit card debt – refinancing to a debt consolidation loan is a popular way to bundle or consolidate many obligations into one loan.

Is refinancing your mortgage to consolidate debt the right choice for you?

First, take a look at the outstanding debts you want to pay off: credit card payments, car loans, student loans. Consider their current balances, minimum payments and interest rates. Then compare refinancing to this type of mortgage loan against other options for debt consolidation, like a personal loan. Throughout the process, it’s important to remember that debt consolidation doesn’t lower your overall amount of debt – it simply rolls all loan balances up into a single loan. It is also important to consider that the debts you may be consolidating or paying off are typically not secured by your home. If you consolidate those debts with a debt consolidation mortgage loan and you fail to meet the repayment terms of your new mortgage, you could lose your home.

Turn Your Home's Equity Into Cash

A cash-out refinance allows you to refinance your existing mortgage and take a new mortgage for more than you currently owe, getting the difference in cash. In the end, you will have one new mortgage that covers both your primary home loan and the loan for the additional money.

 Use that extra cash to:

  • Consolidate high interest debt like credit cards
  • Fund a home renovation
  • Pay for college tuition
  • Plan that dream vacation

Get Started Now

There are many considerations involved in refinancing a mortgage loan. Get the facts about the specific refinancing advantages available for you. Our PHH Mortgage loan consultant can help you navigate the details and requirements. Call us at (800) 210-8849.

Application approval is subject to complete underwriting review based on program guidelines; not all applicants may qualify. Limitations may apply. This is not a commitment to lend.

Refinance Checklist

Refinancing a mortgage involves many of the same steps you encountered when you purchased your home, plus there may be a few new steps involved – if you’re consolidating your home loan with other debts, for instance. To help you navigate the refinancing process, we’ve prepared this checklist of what’s involved.

For more information, or to get your refinancing process started, call an experienced PHH Mortgage loan consultant at (800) 210-8849.

    ✓  Define your goals
    ✓  Determine how much you still owe
    ✓  Run the numbers — see if refinancing is a good move
    ✓  Complete necessary information
    ✓  Have home insurance coverage and a paid receipt for your lender
    ✓  Know your rights

Define your goals

We can help you define your goals and identify which financing option suits your needs. Give an experienced loan consultant a call at (800) 210-8849.

Determine how much you still owe

  • What is the payoff amount on your existing mortgage?
  • Does your current lender charge any fees or penalties for prepayment?

Run the numbers — see if refinancing is a good move

  • Use a refinance calculator to determine if refinancing is a good financial decision for you.

Complete necessary information

  • The specific documents you will need vary depending on your location and loan program, but generally, have available: proof of income, home insurance, and title insurance; copies of your W-2 form; and information about your assets.
  • Have a copy of the deed to your home and a copy of your title policy at hand.
  • If you're applying for a cash out refinance loan, provide the lender with a letter stating how you intend to use the money.
  • Request a payoff statement from your current lender that includes the daily interest rate. You may need this prior to closing.
  • Contact your title company to discover what documents they need. That may include documents from your current lender, your municipality and others. In some states, a survey is required and must be given to the title company in advance of closing.

Have home insurance coverage and a paid receipt for your lender

  • A paid one-year policy for hazard insurance is required.
  • The policy should cover at least the amount of the mortgage.
  • We become the named mortgagee on your policy.

Know your rights

  • During the three-day right of rescission period, you may cancel the loan for any reason.

Refinancing may be the way to meet many of your financial goals. Get the facts about the specific refinancing advantages available for you. A PHH Mortgage loan consultant can help you navigate the details and requirements. Call (800) 210-8849.


1 By refinancing your existing loan, your total finance charge may be higher over the life of the loan.