Find answers to the top mortgage refinance questions
Q. Why should I consider mortgage refinancing?
A. There are two advantages to refinancing your mortgage.
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Lower monthly payments – Mortgage refinancing with a lower rate
can help lower monthly payments. This may mean refinancing your
mortgage using the loan term currently remaining or extending your loan
term.
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Shorter term – A shorter term means you will pay off your
mortgage in fewer years and pay less interest over the life of the
loan.
A lower mortgage refinance rate can make your monthly mortgage payments
lower; however, if you shorten the term, too, your payments may remain
the same or increase. For example, if you had 20 years left to pay on
your mortgage and you refinance at a lower rate with a 15-year mortgage,
you may not notice a decrease in your monthly payment. Because the length
of your loan is shorter, you will pay less interest over the life of your
loan.
Q. Can I roll the closing costs into the refinance balance?
A. Yes, in fact, many people choose to roll the closing costs into their
mortgage loan amount.
Q. What is included in closing costs?
A. Closing costs may include the following:
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Prepaid interest
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Points
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Appraisal and title services
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Private mortgage Insurance, FHA mortgage insurance premium or VA
funding fee, whichever may be applicable
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Miscellaneous costs, such as an underwriting fee or tax service fee
Most of the fees described above are finance charges that affect your
APR which, in addition to interest, represents the cost of credit to
you.
Q. What are points?
A. Points are prepaid fees, often, but not always, used to gain a
lower interest rate on your mortgage. One point is 1% of your mortgage
loan amount. For a $200,000 home, one point would be $2,000. Some points
may be tax deductible; consult your tax advisor.
Q. How much does it cost to lock in my refinance rate?
A. Nationwide Bank charges a $450 commitment fee for you to lock in
your mortgage rate.
Q. How do I apply for mortgage refinancing online?
A. Fill out our online application. Then once your application is
submitted, a Nationwide Bank Mortgage Specialist will call you to discuss
the rest of the refinance process. You can also apply by phone by
calling 1-877-636-0598, 8 a.m. to 9 p.m. ET, weekdays.
Q. Do I have to pay for an appraisal?
A. Yes. It is included in your closing costs.
Don’t forget that Nationwide can provide you with the insurance you need
to protect your property. Request a homeowners
insurance quote from Nationwide Insurance today!
Insurance products offered through Nationwide Insurance are NOT insured
by the FDIC or any federal government agency, nor are they guaranteed by,
deposits of or obligations of Nationwide Bank.