How Much Equity Do I Need To Refinance?

Up Front Costs

These are costs you need to pay to start the process.  It’s important to separate these from other closing costs because these represent money you will be out of pocket if the refinance application is denied.  At Foundation Mortgage our licensed bankers will review your credit, income and asset information prior to sending out an application and charging you for an appraisal.  

  • Typical Up-Front Costs may include:
    • Credit Report Fee
    • Appraisal Fee  (If an appraisal is required).
    • New mortgage payment & interest costs on cash-out refinances

Closing Costs

Closing Costs refer to the various fees and costs you will need to pay at closing in order to complete the refinance.  Upfront costs + closing costs = the total amount of money your home refinance will cost you.  In order to determine whether you should refinance you will need to know what the closing costs are so you can evaluate whether the benefits of the refinance will be worth the costs.

  • Typical closing costs include:
    • Lender Fees
    • Title Company/Attorney Fees
    • Local County Recording Fees
    • State Taxes

Associated Costs With Cash-Out Refinances

Cash-Out Refinances increases the amount of money you owe.  This increase in loan balance owing results in a higher mortgage payment and increases the amount of principal and interest you pay monthly.  Increasing the loan amount can also result in an increase to your insurance premium through higher insurance coverage requirements.  It is important to consider the increased cost of mortgage interest and potential insurance premium increases when you are considering a cash-out refinance.

TAKE CASH OUT

Leverage your investment and use the equity your home has gained over the years

Good for
Renovating your home
Paying down high-interest debt

Use my equity

LOWER YOUR PAYMENT

As an established homeowner, you can improve your financial security by refinancing to a lower payment

Good for
Lowering your monthly outlay
Planning for retirement

Reduce my payment

SHORTEN YOUR LOAN TERM

Learn how the home buying process works with our mortgage Refinance into a shorter term so you can pay off your mortgage soonere tools and resources page

Good for
Reducing the amount of interest you’ll pay
Becoming mortgage-free faster

Shorten my term