Refinancing happens when a current home loan is paid by taking on a new loan. It can be done via your existing lender or, if you choose, a new lender altogether. There are many reasons why people choose to refinance. In this blog, we will take a closer look at refinancing, including just how long it will actually take:
Refinancing as a process generally runs the same way that the application for the original loan did. That means the average time for refinancing can take anywhere between one to two months or four to eight weeks.
Depending on your situation, that timeline can still vary as the process does. In some cases, lenders may offer the option to explore what's known as a "fast refi".
The fast refi can help you speed up home loan refinancing should you be eligible for it. It uses title insurance so lenders can get permission to pay your loan account out without waiting for the discharge to be processed by the existing lender.
Despite the time being reduced considerably in terms of loan refinancing, the lender still has to make inquiries about your requirements and why you're refinancing your existing home loan in the first place. That way, they will be able to properly verify your financial situation as they go along. Not all lenders can or will manage a fast refi; there is also a chance you will not be eligible.
Before you decide to pursue refinancing, it's critical to make sure that you take a thorough look into your current mortgage and financial situation. That way, you can make an informed decision as to whether or not refinancing is actually the correct step for you to take.
Common reasons that people take on refinancing home loans include getting a better interest rate, consolidating other debt, or better loan features.
The next step once you're fully decided on taking on refinancing is finding the correct home loan to take on. There are literally thousands of various home loans available that you can choose from depending on the size of your loan and the kind of lender you want to work with.
To get ideal advice and support, find a reliable broker. Don't be afraid to compare loans before you finally decide on what will serve your needs best.
The broker will do all the legwork when it comes to refinancing applications. At that point, the property may end up having to be revalued. As soon as the new mortgage is approved, then a settlement date as to when the new lender will pay off the existing loan.
Every situation is quite different; there are many reasons why someone chooses to take on refinancing. Normally, it takes anywhere from four to eight weeks. There is such a thing as "fast refi"—though there are factors that will determine whether or not the homeowner is eligible.
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