Refinancing Mortgage Rate

Dear Money Guy,

I bought my home a few years back when the real estate market was hot and interest rates were at 30 year lows. Oh yeah, at the advice of my mortgage broker, I got an adjustable rate mortgage.

This was great when I got it, but now it's killing me. I am not very skilled at mortgages and finance. Is a refinancing mortgage rate the same as a home purchase rate? Meaning, is it a totally different process to refinance a home as it is to purchase one?

I know I sound naive. But I really need to refinance my mortgage.

My question: what is the refinancing mortgage rate?

Thanks in advance for your answer.

- Paul C.

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Dear Paul,

Don't feel bad. Mortgages can be confusing even to those in the financing and real estate industries. That being said, the loan process for refinancing and purchase a basically the same.

Refinancing tends to have much fewer requirements because you are generally using the equity already established in the home to back up the mortgage.

Getting a purchase mortgage is much more riskier, and so there are many additional steps that are often bypassed in refinances (ie. work history, monthly income and expenses, down payments, etc).

There really is no "refinancing mortgage rate." The interest rate for the mortgage you will be getting will based off of a variety of factors including loan program, credit history, and how much equity you have built in the property.

The best way to know what your interest rate will be is to get a free quote. There are many mortgage companies that can provide you with a free and quicky online interest quote.

Here's one company that I recommend getting a FREE online quote from:



Although there is no refinancing mortgage rate, I really hope that you haven't paid out too much unnecessarily with the raise in your adjustable interest rate. Adjustable rate mortgages have hurt far too many individuals. Getting a fixed rate mortgage can stop the bleeding, and allow you to be able to save hundreds of dollars each month.

Regards,


The Money Guy