Should I refinance?

To determine whether or not it is a good idea for you to refinance, you should look at your specific situation and your motivation for refinancing. The most common reasons to refinance are to reduce your rate and/or payment, convert from an adjustable to a fixed rate, or pull cash out of your equity to consolidate debt or improve your home. If your objective is to reduce your rate and payment, you should review your current interest rate and see how much you can save with a 0 point loan and then determine if it makes sense to pay points to reduce your rate further. If you are converting your adjustable rate into a fixed rate, you may actually see an increase in your rate and payment but you’ll get peace of mind knowing your rate will never increase again. If you are using the equity in your home to consolidate debt, your overall loan balance and payment may go up, but you will save monthly because you will eliminate the monthly obligations that you are paying off. Your mortgage professional can run some numbers for you and help you determine whether or not refinancing makes sense for you.

How much can I save if I refinance?

Every situation is different. It depends on what your current interest is and what your motivation is for refinancing. If your current rate is higher than what is available in the market, it probably makes sense to refinance. To get an idea of what you could save by refinancing, check out our payment savings calculator in our calculatorDepot and input numbers specific to your situation or call one of our licensed mortgage professionals for some expert advice.

What if I have a second mortgage on my home? Can I still refinance?

Typically, any second mortgages are paid off through the refinance. We will consolidate both loans into one new first mortgage and you will only have one payment each month. If you’d prefer to keep your second mortgage intact, we may be able to ask your second mortgage lender to remain in second position and allow us to refinance the first loan. This process is called subordination and there is typically a fee charged by the second mortgage lender.

Am I allowed to refinance if my property value is less than I owe?

There are options that may allow you to refinance your loan even if the value of your home is less than what you owe. Call and speak with one of our mortgage professionals to see if you qualify for one of our programs.

What are the costs associated with refinancing?

Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include 3rd party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as processing and underwriting. If you are paying points to lower the rate, the cost of each point that you pay equals 1% of your new loan amount. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and homeowners insurance (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.

What type of documentation do I need for refinance?

Standard documentation collected for a refinance transaction includes information regarding your income such as paystubs covering the most recent 30 days and W-2s for the last two years, asset information such as bank or mutual fund/stock statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowners insurance declarations page.

Can I refinance with bad credit?

Depending on the reasons why your credit is imperfect, there are great loan options available including our government programs. Call and speak with one of our mortgage professionals to determine whether or not you qualify for one of our programs.

Is it true that you should only consider refinancing if you can lower your rate at least .5

There is no rule-of-thumb when it comes to refinancing because there are different reasons to refinance. If you are currently in an adjustable rate looking to get into a long-term fixed loan, your rate and payment may actually increase, but you will be in a better long-term situation knowing your rate and payment will not change. If you are looking to consolidate debt, your loan amount and mortgage payments may go up but your overall monthly outflow will decrease because you will have eliminated some or all of your credit card bills and other monthly obligations. There are also no-cost and low-cost refinance options that can lower your rate and payment with no or minimal investment. It is a good idea to go over your specific situationwith a mortgage expert to determine whether refinancing makes sense or not.


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What the Customers are Saying
Carolyn D. Portland, OR

This is the second time I've used Zack at PCF.The first time, was a refinance and he went above and beyond the call of duty to get things straightened out from a mess created by Wells Fargo.Zack and the team spent many hours on the phone with Wells Fargo which would have been a nightmare for me to have tackled.

The second time, we're buying a house, and he's been there, working as hard as ever.I highly recommend him and the team.

Tommy W.Apopka, FL
I just purchased my home last year with a VA rate of 4.0%, I contacted Prime Choice and Zack. All through the process he kept me informed and updated on the process. Never was he pushy, but provided me with some great rates and cash-out. The process was smooth and very user friendly. I would recommend this team over my current banker any day. They get results, and mind you GREAT results.
Joji S.Antioch, CA

We just had our streamlined refinancing through Prime Choice Funding and I must say that the whole process was smooth. At first we were hesitant to proceed with the refinancing because the flyer we received in the mail seemed to be too good to be true. Indeed there were no income verification and no invasive personal information required. When I called I was told that it normally takes less than 4 weeks but I did not anticipate that it would close within the 3 week period which happened while we were out of town and the team of Jonathan Nguyen & David Arnold were very professional and accommodating that they were able to work with a Notary to have the signing of loan docs. at our hotel. We just received our refund from our previous lender and it turned out to be more than we expected. I would highly recommend the Prime Choice Lending to anyone who are in refinancing need.

Dan A. Temecula, CA

Great experience with no hassle. I was hesitant and nervous but my agent answered all my questions and explained them to me in simple terms. I got the lower rate and we are saving $$$$. What are you waiting for? Make the move to start saving!!!

Jeffrey B. Petaluma, CA

I contacted Prime Choice Funding after receiving a postcard that I thought was too good to be true.  When I contacted them I was assured that they could deliver what they were advertising.  I went through the process while keeping a quote from my previous bank in my back pocket as a backup plan.

I have had more than my share of bad experiences with banks in the past so I was very skeptical and was sure something would go wrong....and although the loan did take a few days longer than expected the communications from my Loan Officer, Chris and his Processor, Stephen kept me from pulling all of my hair out. In the end the loan closed before the deadline, and it was better than promised.

I will be back for another refi soon!

Jon J. Philadelphia, PA

I received one of those bulk mailers that all of the lending agencies seem to send out en mass. After sorting through them and making a few phone calls, Prime Choice was clearly the best deal in terms of interest rates and brokerage fees.

I dealt primarily with Courtney Edwards, who was a pleasure to talk to and was able to dumb down to my level some of the more complicated aspects of refinancing my mortgage. I ended up learning a bunch of stuff I probably should have known about the first time through, but was overwhelmed by. Long story short, I refinanced through Prime Choice and couldn't be happier. The closing process was straightforward and easy. Thanks guys!

John F. Vista, CA
I highly recommend Prime Choice Funding! I received a mailer from Prime Choice Funding a couple years ago and when I decided it was time to re finance my home due to low interest rates I contacted several lenders including Prime Choice Funding and got quotes from all of them. They all (except for Prime Choice Funding) had different fees and rates and were very pushy and didn't want to give me the best rate they could and it was very confusing to me until I contacted Craig Somodi at Prime Choice Funding. Craig was very professional and explained everything to me very carefully so I understood the process completely from start to finish and whenever I had a question Craig and the other staff at Prime Choice Funding got back to me right away. The whole process was really quick and easy and without making me produce a huge amount of documentation for the loan and was very hassle free with no surprises or hidden fees. It was a very pleasant experience and Craig Somodi was very honest, patient, upfront and helpful through the entire process. Again, I highly recommend Prime Choice Funding and I would definitely use them again in the future.
Jacquelin F.Santa Rosa, CA
Prime Choice Funding made my streamline refinance very easy. I work long hours and was at times not easy to get a hold of and they were very understanding and professional all steps of the way. Kris Larsen was my agent and he was very personable always available. I would use this company again for my mortgage needs.
Ayhan I.Turlock, CA
I worked with Prime Choice Funding twice in a short time and these people are very good with what they are doing. They are very helpful and they got a lot of patience for their customers since I know I am very picky and ask a lot of questions. I also got the best deal possible both of the time.
Nicole R.Chino, CA
We just purchased our first NEW home and we chose to go with an outside lender which ended up being Prime Choice funding. We had a great experience and got a low 30 year fixed rate. They were very helpful and timely in most matters and were in contact with us often. We would definitely use them again and recommend them to our friends and family.