Refinancing Mortgage
Lower Monthly Payments
Secure a better rate and reduce your financial burden each month.
Pay Off Your Loan Faster
Switch to a shorter term and save money on interest while building equity more quickly.
Cash-Out Options
Tap into the equity you’ve built to fund renovations, education, or other major expenses.
Remove PMI
Once you’ve reached 20% equity, refinancing can eliminate costly private mortgage insurance.
What Does It Mean to Refinance?
Refinancing means replacing your current mortgage with a new one—often with a lower interest rate, a different loan term, or cash out from the equity you’ve built. Homeowners refinance for many reasons: to reduce monthly payments, pay off their loan faster, or use equity for major expenses. With the right guidance, refinancing can save thousands over the life of your loan while helping you reach new financial goals.
Why Homeowners Refinance
Refinancing is more than just lowering your interest rate. It can shorten the length of your loan, change from an adjustable-rate mortgage to a fixed-rate loan, or provide access to cash through a cash-out refinance. Many borrowers also refinance to eliminate private mortgage insurance (PMI) once they’ve built up enough equity. Whatever your reason, refinancing is about creating a mortgage that fits your current needs—not just the ones you had when you first bought your home.
How to Refinance a Mortgage
Refinancing is often simpler than buying a home for the first time, though many of the steps are similar. The process begins with an application where you’ll provide details about your property, current loan, income, assets, and debts. A credit check is usually performed at this stage.
You’ll also need to gather supporting documents such as recent pay stubs, W-2s or 1099s, and bank statements. Self-employed borrowers may need to provide tax returns or invoices to verify income.
Once your application is reviewed, your lender will present you with an interest rate you can lock in to protect against market changes during underwriting. The underwriting process involves verifying all information and may include an appraisal to confirm the home’s value.
The final step is closing, where you’ll review and sign documents that outline the new loan terms. After closing, your lender sends funds to pay off your existing mortgage, and your new loan officially begins.
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Who Qualifies for a Conventional Loan?
To qualify, borrowers typically need:
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A credit score of at least 620.
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Stable employment and verifiable income.
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A reasonable debt-to-income (DTI) ratio.
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A down payment (as low as 3%, though 20% avoids PMI).
Lenders may also look at financial reserves and your history of responsible credit use.
FAQ
Can You Refinance a Conventional Loan?
Yes, you can refinance a conventional loan. Often, homeowners who have this type of mortgage refinance into a new conventional mortgage, too. This option is available even if you’d like to cash out or shorten or extend your repayment timeline.
Can You Refinance a Jumbo Loan?
You can refinance a jumbo loan, but the overall process is more complex than refinancing non-jumbo loans. The borrowing standards are often higher if you’re refinancing into a new jumbo loan. However, if you have enough equity to qualify for a non-jumbo loan, the process is similar to other types of refinancing.
Can You Refinance an Adjustable-Rate Mortgage?
Refinancing an adjustable-rate mortgage isn’t just an option; it’s often a smart move. You can transition to a fixed-rate loan, securing a new interest rate that won’t shift over the life of the mortgage. Usually, you’ll want to move forward before your original mortgage undergoes an interest rate adjustment, as that can safeguard you against unexpected increases.
Can You Refinance a Fixed-Rate Mortgage?
You typically do have the ability to refinance an existing fixed-rate mortgage. This can work whether you want to try and qualify for a lower interest rate, alter your payment timeline, or perform a cash-out refinance.
Can You Refinance an FHA Loan?
You have several choices if you’d like to refinance an FHA home loan. Along with transitioning to a conventional loan with another lender, you may be able to go forward with an FHA streamline refinance instead, which involves less credit documentation and underwriting.
Can You Refinance a VA Home Loan?
As with an FHA mortgage, a VA home loan can be refinanced in several ways. You can explore options through a new lender or use the VA streamline refinance option (known as VA IRRRL) to simplify the process.
Ready to Explore Your Options?
With over 17 years of experience, we’ve helped Utah homeowners refinance to lower their payments, eliminate PMI, or unlock cash for life’s big expenses. We’ll review your goals, compare your options, and make the refinancing process simple from start to finish.
Ready to refinance your mortgage? Let’s find the solution that works for you.