Question 1

How long does refinancing take?

Accepted Answer

The refinancing process typically takes 30-45 days from application to closing. This includes time for appraisal, underwriting, and final approval. With Republic Home Loans, we streamline the process to get you closed as quickly as possible.

Question 2

What are closing costs and can I roll them into my loan?

Accepted Answer

Closing costs typically range from 2% to 5% of the loan amount. These can include appraisal fees ($400-$600), title insurance ($1,000-$2,000), origination fees (0.5%-1% of loan), and other administrative costs. Yes, you can often roll these costs into your new loan, though this will increase your loan balance.

Question 3

Do I need an appraisal to refinance?

Accepted Answer

In most cases, yes. Lenders need to verify the current value of your home to determine your loan-to-value (LTV) ratio, which affects your interest rate and loan terms. However, some loan programs may offer appraisal waivers if you have significant equity and meet certain criteria.

Question 4

When does refinancing make sense?

Accepted Answer

Refinancing typically makes sense when you can lower your interest rate by at least 0.75%-1%, want to shorten your loan term, need to switch from an adjustable to a fixed-rate mortgage, or want to tap into your home equity. Use our calculator above to see your potential savings and break-even point.

Question 5

Will refinancing hurt my credit score?

Accepted Answer

Refinancing may cause a small, temporary dip in your credit score (typically 5-10 points) due to the hard credit inquiry and new account. However, this impact is usually minimal and your score typically recovers within a few months, especially if you make on-time payments.

Question 6

Can I refinance if I have less than 20% equity?

Accepted Answer

Yes, you can refinance with less than 20% equity, but you may need to pay private mortgage insurance (PMI) until you reach 20% equity. Some loan programs, like FHA and VA loans, have different equity requirements. We can help you explore all your options.

Question 7

What's a cash-out refinance?

Accepted Answer

A cash-out refinance allows you to borrow more than you owe on your current mortgage and receive the difference in cash. This is a popular way to fund home improvements, consolidate high-interest debt, or cover major expenses. You'll need at least 20% equity remaining after the cash-out.

Question 8

Should I refinance from a 30-year to a 15-year mortgage?

Accepted Answer

Refinancing to a 15-year mortgage can save you tens of thousands in interest over the life of the loan and help you build equity faster. However, your monthly payment will be higher. This makes sense if you can afford the higher payment and want to pay off your home sooner.

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Refinancing Questions Answered