Refinance FAQs: Frequently Asked Questions about Refinance Loans

What is refinance loan?
What is a cash-out refinance?
What’s the difference between refinance and second mortgage?
How do I know what my loan rate will be?
Will I have out of pocket costs when I refinance my loan?
Is there a Countrywide office near me?

What is a refinance loan?

A refinance loan replaces your existing mortgage with a new loan. Homeowners often choose to refinance to lower the interest rate on their loan, refinance to get cash and/or consolidate debt or maybe even change the terms of the loan from a 30 year to 15 year mortgage or from adjustable rate to fixed rate.

What is a cash-out refinance?

Cash-out refinance is a type of refinance loan. With a cash-out refinance, you refinance your existing mortgage for more than you currently owe and get cash back for the difference, minus the fees. Many homeowners use a cash-out refinance loan to get cash for home remodeling, vacation, medical or educational expenses, and more.

What’s the difference between refinance and second mortgage ?

A refinance loan replaces your current mortgage with a new mortgage. A second mortgage is a form of borrowing that allows homeowners to access the available equity in their home by taking out a “second loan” on their home, without changing the terms of their original mortgage. Homeowners can choose from a fixed rate second mortgage (also called home equity loan) or a home equity line of credit (HELOC).

How do I know what my loan rate will be?

Mortgage interest rates can vary based on several factors, including the type of loan program, amount of money you desire, your credit history, your income, the value of the property, the index the loan is based upon, the loan-to-value ratio, as well as the number of discount points you choose to pay. Read more to find out factors influencing interest rates and what you can do lower your rate.

Will I have out of pocket costs when I refinance my loan?

Typically, refinancing your loan will involve many of the same closing costs that you see when you’re obtaining a purchase loan. These costs include appraisal fee, application fee, taxes, etc. There are several ways to handle the closing costs involved with refinancing your loan. Learn more about closing costs involved with refinancing your loan by calling 1-xxx-xxx-xxxx or by reading the refinance closing costs section on this site.

Can I start my refinance application over the phone?

Yes, we make applying for a refinance loan easy! Call us now at 1-866-436-0620for a FREE, no obligation consultation with a Countrywide refinance expert.