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What to say to a mortgage lender when applying to refinance

To start a refinance conversation, homeowners considering refinancing should state their goals and bring vital loan details including current rate, amount owed, and payment breakdown.
When interest rates fall or an ARM adjustment nears, homeowners with at least 20% equity often refinance to remove mortgage insurance under FHA rules.
Rate-and-Term refis replace your loan with a lower-rate version to cut monthly payments, while cash-out refis borrow extra to pay higher-interest debts and reduce total monthly debt.
A move to a shorter term saves interest while increasing monthly outlays, so lenders may suggest paying extra monthly instead of refinancing to ease retirement savings tradeoff.
Lenders typically probe goals and priorities, asking borrowers to list top outcomes such as use of savings and plans to avoid new debt, Jim Sahnger said loan officers compare talks to candid chats.

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