How Does Refinancing Work in New Hampshire?

To refinance is to get a new mortgage that's better than the one you have now. The new mortgage is used to pay off your old mortgage. The process of refinancing is similar to when you purchased the home... only easier and less expensive.

Here's how it works:

1. Contact Compass Mortgage at (603) 471-9300 to discuss how much refinancing will save you.
2. Apply for the mortgage of your choice (takes 1/2 hour)
3. We often need an updated appraisal (takes a week or two)
4. Go to a closing (takes 1/2 to 3/4 hour)
5. Skip a payment and start paying the new mortgage the following month.
   

The costs of refinancing will normally range from $0 to $2500, depending on your loan amount. These costs can be paid with any combination of the following:

• "No Closing Cost" Loan is where the lender pays the closing costs.
• The borrower can pay the closing costs out of pocket at the closing (uncommon) . The borrower can roll the costs on to the loan amount to get the lowest rate.
  

Warning: Just because you refinance and your payment goes down by $200, doesn’t mean that is the amount you are saving – you may have stretched out the financing over a longer period of time. The real savings is based upon how much less interest and PMI you will pay each month and over the life of the loan.