Refinance Q&A with Loan Officer Craig Wania
St. Louis – December 8th, 2021 – Buying a home is arguably one of the largest financial decisions a family or person can make. The process of obtaining a mortgage loan when you buy your home is not much different than when you refinance your home. Refinancing a home is essentially replacing your current mortgage loan with a new loan, often giving you a lower interest rate, removing principal, and/or shortening the loan term.
Craig Wania, Vice President and Loan Officer at our St. Peters, Missouri Office, simplifies the process of refinancing to make it quick and easy for borrowers.
Q: Can you explain what refinancing a mortgage means?
A [Craig Wania]: Refinancing is taking out a new loan to replace your existing loan.
Q: In your experience, what are some of the main reasons a borrower would want to refinance their mortgage?
A: Refinancing can be done for a variety of reasons. The main reasons people refinance is to obtain a lower rate, take additional cash-out, or reduce their term. Most often refinancing is done for a lower interest rate which typically lowers the monthly payment if they are keeping a similar term.
Q: When or why should a borrower consider refinancing their mortgage?
A: A borrower should consider refinancing for the following reasons: if you are paying a rate higher than current market rates, to reduce or eliminate paying mortgage insurance or PMI, to consolidate higher interest loans and credit card debts into their mortgage, for home improvements.
Pros include [potentially]:
- Lowers your current interest rate
- Reduces your monthly mortgage payment
- Shorten overall loan term
- Use your home’s equity to cash-out at closing
- Consolidate other debts
- Remove or reduce mortgage insurance premiums
Q: Does refinancing effect a borrower’s credit score?
A: As with taking out any new loan a borrower’s credit score is likely to drop a little until they have made at least 3 payments on the new loan. However, the benefit of interest savings typically far outweighs a temporary minor drop in your credit score.
** I recommend contacting a mortgage professional to determine if refinancing makes sense for your situation! **
Interested in talking with Craig Wania about your refinancing needs? Contact Craig today!
About Gershman: Communities, families, and homes are at the heart of what we do at Gershman Mortgage. Our founding principles are based on the core values of honesty, integrity, the entrepreneurial spirit, and putting our customers first. We are passionate and committed to customer service and strive to ensure that we exceed the expectations of our customers. We are a customer-centric company devoted to creating and maintaining long-lasting relationships.
NMLS #138063 16253 Swingley Ridge Road Suite 400 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender.