Mortgage Refinancing Services
Current low interest rates make now an exceptional time for refinancing your home loan.
Refinancing your mortgage loan with BBVA could lower your monthly payment, leaving you more funds for retirement savings, paying debts, college savings, and more. It only makes sense to refinance if conditions are right for you. So, it's important to first understand the process of refinancing a mortgage.
The strategy of refinance
Like everything in life, a plan helps ensure you arrive at the best solution. When you refinance a mortgage you’re committing to a long-term obligation. Getting it right is important. Below are six things to know about the mortgage refinancing process to make the smartest decision.
How to get started with refinancing your mortgage
Know your reasons for refinancing
Refinancing to lower the interest rate can accomplish many things, these include reducing a monthly payment, reducing expenses with a lower fixed monthly payment, shortening the remaining term, or eliminating PMI. Selecting the correct mortgage refinance and terms depend on which goals you want to achieve.
Based on the above goals, set budget guidelines for monthly payments. Decide on the mortgage term and interest rate that fit your financial requirements. Also decide on whether to apply for a fixed or adjustable-rate mortgage. Our mortgage refinance calculator can help with these decisions.
Know your credit rating
Stay on top of your credit rating. A low credit rating will affect the interest rate and the availability of a mortgage refinance.
Know your current property value
Property values can fluctuate. The value of your property will be considered when determining your refinancing options.
Study your mortgage options
Need to refresh your knowledge of mortgage basics like the difference between fixed-rate and adjustable-rate mortgages? Visit our Mortgage Options page to discover all the mortgage refinance opportunities that are available to you.
Speak with an expert
The process can seem challenging, but it doesn't have to be that way. BBVA Mortgage Loan Officers have the experience and dedication to guide you through the process and make your refinance a seamless experience.
Does refinancing hurt your credit score?
Taking on new debt typically causes your credit score to dip, but because refinancing replaces an existing loan with another of roughly the same amount, its impact on your credit score should be minimal.
Take advantage of mortgage calculators
When refinancing a mortgage there will likely be trade-offs between the upfront costs of refinancing and the savings in future monthly payments. It is important to make sure the savings in monthly payments will justify the upfront costs. Determining the costs and benefits is made easier using our mortgage calculators.
We have a calculator to answer virtually every question regarding refinancing costs and savings.
What you’ll need to apply
To get started with your mortgage refinance, you may need to provide the information below (your mortgage loan officer could ask for additional information later).
- Income documents
- Asset documents
- Debt documents
- Personal Identification
You also may be interested in:
Refinancing Your First Mortgage
Looking to lower your interest rate and get your loan paid off sooner? Then it might be time for you to consider refinancing.
Refinancing Your Second Mortgage
Chances are that over the course of a typical mortgage, you will have an opportunity to refinance.
Details you need to make a smart decision
- All loan applications are subject to Borrower eligibility, Loan Program requirements, and Underwriting approval.
- Interest Rates, including those published or quoted, are not guaranteed until Locked in.
- Locked Interest Rates are subject to the terms of the Lock Agreement.
- Interest Rates subject to change without notice.
- Additional Loan Products / Programs and Pricing options may be available (e.g. FHA, VA, USDA, etc.).
- Other terms, conditions, and restrictions may apply.
- On some products, BBVA offers discounted rates to borrowers who obtain a qualified BBVA bank account and establish a monthly auto debit of their mortgage account from that account. For qualifying mortgage products, the rates displayed reflect this auto debit rate reduction. Please consult with one of our loan officers for further details.
- All examples assume that this loan will be in first lien position.
- If the down payment is less than 20%, mortgage insurance may be required and could increase the monthly payment and APR. The payment amount does not include homeowner's insurance, flood insurance (if applicable), or property taxes which must be paid in addition to your loan payment.
- The displayed Annual Percentage Rate (APR) is a measure of the cost to borrow money expressed as a yearly percentage. For mortgage loans, excluding home equity lines of credit, it includes the interest rate plus other charges or fees (such as mortgage insurance, discount points, etc.). For home equity lines, the APR simply reflects the interest rate. When shopping for a mortgage, you can use the APR to compare the costs of similar loans between lenders.
- Interest rates and annual percentage rates (APRs) are based on current market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score, refinance with cash out and other variables—call for details. This is not a credit decision or a commitment to lend.
- Additional closing costs may apply. Refer to your Loan Estimate (LE) for specific details.
For Refinance Transactions:
Before you apply, we encourage you to consider carefully whether refinancing your existing mortgage is the right choice for you. With cash-out refinancing, you will pay off your current home loan and create a new mortgage. You’ll keep a portion of the equity as cash that you can use for home improvements or other purposes. Most likely, your interest rate will be different than your current loan. Remember that cash-out refinancing also increases your overall level of mortgage debt. Any monthly payment reduction may come from lowering the interest rate, a longer loan term, or a combination of both. By extending the loan term, you may pay more interest over the life of the loan. You may also have additional costs from closing the transaction.
NMLS ID 402936