How To Refinance A House

If you are wondering how to refinance a house, most likely it's because you would like a lower interest rate or lower monthly payments. Refinancing a house mortgage is much like applying for a first-time mortgage. The difference is that when you refinance your lender  pays off the first mortgage, and you pay the lender. You can refinance with your current lender or shop around and refinance through a new lender. Either way, the first step is to fill out an application.

You will need the following items to refinance a house:

• Pay stubs
• Title and homeowner's insurance
• W-2s
• Bank statements or investment records

1. Gather all your documentation. To fill out your application completely and accurately, you will need the following pieces of information:
   -You will need to show proof of income for the last 30 days.
   -Pay stubs are adequate proof.
   -Show copies of your title and homeowner’s insurance.
   -Provide income history--W-2s are generally sufficient proof.
   -Show proof of assets to cover closing expenses--bank statements and investment records are acceptable.
    
2. Choose the right loan. Your loan officer will inform you of your options. Be sure to ask questions if you don’t understand something or need additional details. It may be advantageous to get a second or third opinion. Once you start the refinancing process, you may need additional documentation, depending the type of loan you choose.
   
   Once the refinancing process is complete, you can expect to save money over the life of the loan and pay lower monthly mortgage payments. If you apply jointly, your co-applicant will also need to show proof of employment and income history. Be sure to have all your documentation together to expedite the process and have a pleasant, refinancing experience.