Loan
Refinancing in Gilbert and Queen Creek, AZ
Replace the loan you have with one that fits today.
What it is
How it works
Some people refinance to change the term, some to take cash out, some to drop mortgage insurance. We walk through the costs and savings so you can decide if it is worth it.
Who it fits
- Owners who want a different rate or term on the loan they have.
- Owners who want to drop mortgage insurance by moving to a different loan.
- Owners who want to switch from an adjustable rate to a fixed one.
- Owners who want to take someone off the loan after a divorce or a buyout.
The basics
How a refinance works
A refinance pays off the loan you have with a new one. There are two kinds.
- Rate-and-term: the new loan pays off what you owe, plus the costs if you roll them in. You change the rate, the term, or the loan type, and take no cash out.
- Cash-out: the new loan is larger than what you owe, and you get the difference at closing.
- FHA and VA loans have streamline refinances that can skip some of the usual paperwork, and sometimes the appraisal.
- Either way, it is a new loan: you apply, get a Loan Estimate, and close again.
Is it worth it
When a refinance makes sense
When it may not: you plan to move soon, or the savings are small next to the costs.
- Rates are lower than when you got your loan, and you plan to stay long enough to earn back the costs.
- You want a payment that holds steady, moving from an adjustable rate to a fixed one.
- You want to pay the loan off sooner with a shorter term, and the higher payment fits your budget.
- Your credit or your home's value has improved since you got the loan.
- You need to take a name off the loan after a divorce or a buyout.
Costs
Costs and break-even
A refinance has closing costs much like a purchase. The break-even point tells you whether it pays.
- Add up the closing costs on your Loan Estimate.
- Subtract the new monthly payment from the one you pay now. That is your monthly savings.
- Divide the costs by the monthly savings. The answer is how many months it takes to break even.
- If you expect to keep the loan longer than that, the refinance can pay off. If not, it may cost you.
- Look at total interest too. A new, longer term can lower the payment and still cost more over the life of the loan.
Mortgage insurance
Dropping mortgage insurance
Mortgage insurance is not always for the life of the loan. Once you have enough equity, you may be able to end it.
- On a conventional loan, you can ask your servicer to cancel private mortgage insurance once you have built enough equity and paid on time. It also ends on its own at a point set by federal law.
- Ending private mortgage insurance this way needs no refinance. Ask your servicer what it requires, which may include an appraisal.
- FHA's yearly premium stays for the life of many FHA loans. Refinancing to a conventional loan once you have enough equity is the usual way to end it.
- VA loans have no monthly mortgage insurance, so there is none to drop.
- We check whether your equity and the new loan's costs make the switch worth it.
Calculator
Is a refinance worth it?
You type every number. Nothing here is today's rate.
This is an estimate, not a loan offer. A lender has to confirm it.
This is not a commitment to lend or lock a rate.
Rates change. Call us. (480) 297-8855
Thinking of paying off debts with your home?
Compare what you pay today with a cash-out refinance and a home equity line, then save it as a PDF.
Costs and limits
What it costs
The kinds of costs, not amounts. Your Loan Estimate lists the numbers.
Costs to expect
- Closing costs much like a purchase: lender fees, title, recording, and often an appraisal.
- Prepaid interest and a new escrow account for taxes and insurance.
- Some lenders cover the closing costs in exchange for a higher rate. Ask to see both versions.
Limits
- Lenders check your equity, credit, and income again.
- Some programs ask that you have had your current loan for a while before you refinance.
- A lower payment over a longer term can still cost more in total interest.
Compared
How it compares
Next to Cash-out refinance.
- A rate-and-term refinance changes the rate or the term. A cash-out refinance also turns equity into cash.
- Cash out means a bigger loan, so the payment and the total interest can go up.
- If your current rate is low, a home equity line or a second mortgage can get you cash and leave your first loan alone.
The process
From first call to closing
First call
We talk through your goal: a lower payment, a shorter term, cash out, or dropping mortgage insurance. We look at your current loan statement and what your home may be worth.
Options and Loan Estimate
We compare loans from the lenders that fit your goal. When you apply, you get a Loan Estimate within three business days, so you can see the rate, the payment, the costs, and your break-even.
Appraisal and underwriting
The lender orders an appraisal unless your loan qualifies to skip it. An underwriter checks your income, credit, equity, and the title, and may ask for a few more documents.
Closing Disclosure
At least three business days before closing, you get a Closing Disclosure with the final terms. Compare it with your Loan Estimate and ask about anything that changed.
Signing and your right to cancel
You sign the new loan papers. On a refinance of the home you live in, federal law usually gives you three business days to change your mind before the loan funds.
Your old loan is paid off
The new loan pays off the old one. Your old servicer refunds any money left in its escrow account, and your new servicer tells you when your first payment is due.
Questions
Questions about this loan
Not here? Call (480) 297-8855.
When is a refinance worth it?
When the monthly savings earn back the closing costs before you expect to sell or refinance again. The calculator on this page shows the breakeven in months.
Can I roll the closing costs into the new loan?
Often, if you have enough equity. Your balance goes up by that amount, so you pay interest on the costs too.
Will I need a new appraisal?
Usually. Some streamline refinances and some conventional refinances can skip it. We tell you which applies once we see your loan.
Can a refinance remove my mortgage insurance?
Moving from an FHA loan to a conventional loan can end FHA's yearly premium if you have enough equity. A conventional loan may also let you cancel private mortgage insurance without refinancing.
Do I have to refinance with the lender I have now?
No. You can refinance with any lender that fits your loan. Your current servicer is paid off at closing, and your new lender tells you where to send payments.
Will my escrow account carry over?
No. The new loan opens its own escrow account for taxes and insurance, funded at closing. Your old servicer refunds what is left in the old account after it is paid off.
Contact
Ask about this loan
Send a note and we’ll get back to you soon.
- Call or text(480) 297-8855
- Emailchance@howardfunding.com
- Office4365 E Pecos Rd #108, Gilbert, AZ 85295
- Hours
- Monday–Friday: 8 AM – 6 PM
- Saturday: By appointment
Areas we serve
Where we lend nearby
Loans
Other loans
A short explanation of each. No rates here.
Home equity lines
Borrow against the home you own, as you need it.
Home purchase loans in Gilbert and Queen Creek, AZ
Financing for the home you are buying.
Conventional loans in Arizona
The loan most buyers use, with many lenders competing for it.