MYRTLE BEACH, SC (WMBF) - It’s a basic restructure of your mortgage and refinancing happens for a variety of reasons.
Stephen Funderburk, senior mortgage banker with Atlantic Bay Mortgage said it could entail going from a 30-year mortgage to a 15-year mortgage, or to get a lower interest rate at a lower payment.
Homeowners can even do cash-out refinances to tap into the equity of their home.
Funderburk said interest rates have come down a bit this year against most predictions of what interest rates were going to do. He noted it’s a good thing for homeowners.
“We’ve refinanced a lot of clients this year that purchased within the last year because the rates have come down so much,” Funderburk said.
He added refinancing is a case-by-case basis, and could depend on things like credit and current rate amounts.
Funderburk, however, said over the course of a 30-year loan, the savings could be sizeable.
“You know a three quarters of a percent difference on a $200,000 mortgage could save you a $1,000 a year at least in interest," he said.
The process can take up to 30 days and there may be some costs.
“Things like attorneys fees, appraisals are involved in most refinances. Not all, but some refinances require an appraisal," Funderburk said.
Basically, according to Funderbunk, it all comes down to comparing what you spend to what you’ll save.
“When we’re accessing whether its a good idea to refinance or not, we want to figure out what the cost and then what the savings are going to be and how long will it take you to recoup through those monthly savings the cost from day one," he said.