Re-Finance

Paying off an existing loan with the proceeds from a new loan, usually of the same size, and using the same property as collateral. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing. The difficult part of this calculation is predicting how much the up-front money would be worth when the savings are received. Other reasons to refinance include reducing the term of a longer mortgage, or switching between a fixed-rate and an adjustable-rate mortgage.If there are prepayment fees attached to the existing mortgage, refinancing becomes less favorable because of the increased cost to the borrower at the time of the refinancing.

Although a refinance can bring a homeowner substantial financial benefits, some homeowners find the refinancing to be painful and somewhat of a mystery. At Credit Sesame, one of our goals is to arm consumers with the tools to make mortgage refinancing as transparent, quick and pain-free as possible. Here are the 10 steps that will ensure that you have a fast and painless refinance.