At RedDoor, we're always thrilled to help homeowners refinance their mortgage – whether they're looking to lower their interest rate, reduce their monthly payment, cash-out, or otherwise.
If you're in the market to refinance, or here because you've just started the process, we put together a list of common terms and questions that should help get you up to speed as quickly as possible!
- Rate Lock: To lock your rate, we need to complete your full application and acknowledge the upfront disclosures. Once the file is locked, the rate is good for 30 days.
- Days to Close: In most cases, we complete a refinance transaction between 21 and 30 days after the upfront disclosures are acknowledged.
- Appraisal Waiver: Waivers are granted based on a full evaluation of the mortgage application and loan program availability. Your loan officer can notify you if the property is eligible for a waiver upon completing your upfront disclosures.
- Appraisal Fee: If an appraisal is required, this cost is the only upfront out-of-pocket cost to you, as you will receive a copy of the appraisal report whether or not we close the loan.
- Appraisal Refund: If an appraisal is required on a primary home, rate-and-term conventional refinance, we will refund the cost as part of the post-closing process.
- Prepayment or early payoff: There is no prepayment or early payoff penalty. You can make additional payments to reduce your principal balance or payoff the balance of your mortgage at any time.
- Impound Account: If selected, the mortgage payment is set up to include the required property taxes and/or homeowners' insurance as part of the total monthly mortgage payment. The lender will use the funds to pay the fees before the due date on your behalf. Upfront disclosures will outline the required funds needed to start the account.
- Who do I make my mortgage payment to? RedDoor operates as a mortgage broker and manages the homeowner's refinance transaction all the way to close. At closing, the lender selected to fund the loan will provide clear instruction on how to process the monthly mortgage payment.
- Will the lender sell my loan after closing? In the current environment, most lenders sell their loans as part of mortgage-backed securities within 90 - 120 days but continue to serve as the servicer. In the event that servicing is changed, advance notification will be sent to the borrower.