--- title: How to Refinance your Property’s Mortgage Loan description: Figuring out how to refinance your home's mortgage loan isn't such an easy task. However, we've compiled a quick, easy-to-understand guide to help you out! image: https://blog.sdnyrealty.com/hubfs/Blog_Images/How%20to%20Refinance.jpg --- - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Forms](https://sdnyrealty.com/forms/) -   [![S&D Commercial Real Estate Agency](https://blog.sdnyrealty.com/hs-fs/hubfs/S__D_Real_Estate_January2019/images/sd-original-logo_300px.png?width=300&height=194&name=sd-original-logo_300px.png "S&D Commercial Real Estate Agency")](https://sdnyrealty.com/) - [About](https://sdnyrealty.com/long-island-commercial-real-estate-firm/) - [Agents](https://sdnyrealty.com/long-island-real-estate-agents/) - [Listings](https://sdnyrealty.com/property-listings/) - [Property Management](https://sdnyrealty.com/property-management-company/) - [Resources](https://sdnyrealty.com/real-estate-resources/) - [Neighborhood Guide](https://sdnyrealty.com/neighborhood-guide/) - [Long Island](https://sdnyrealty.com/long-island-commercial-real-estate/) - [Nassau County](https://sdnyrealty.com/nassau-county-commercial-real-estate/) - [Bethpage](https://sdnyrealty.com/bethpage-commercial-real-estate/) - [Farmingdale](https://sdnyrealty.com/farmingdale-commercial-real-estate/) - [Franklin Square](https://sdnyrealty.com/franklin-square-commercial-real-estate/) - [Garden City](https://sdnyrealty.com/garden-city-commercial-real-estate/) - [Glen Cove](https://sdnyrealty.com/glen-cove-commercial-real-estate/) - [Hempstead](https://sdnyrealty.com/hempstead-commercial-real-estate/) - [Hicksville](https://sdnyrealty.com/hicksville-commercial-real-estate/) - [Long Beach](https://sdnyrealty.com/long-beach-commercial-real-estate/) - [Mineola](https://sdnyrealty.com/mineola-commercial-real-estate/) - [Rockville Centre](https://sdnyrealty.com/rockville-centre-commercial-real-estate/) - [Suffolk County](https://sdnyrealty.com/suffolk-county-commercial-real-estate/) - [Babylon](https://sdnyrealty.com/suffolk-county-commercial-real-estate/babylon-commercial-real-estate/) - [Brookhaven](https://sdnyrealty.com/brookhaven-commercial-real-estate/) - [Hauppauge](https://sdnyrealty.com/hauppauge-commercial-real-estate/) - [Huntington](https://sdnyrealty.com/huntington-commercial-real-estate/) - [Islip](https://sdnyrealty.com/islip-commercial-real-estate/) - [Melville](https://sdnyrealty.com/melville-commercial-real-estate/) - [Riverhead](https://sdnyrealty.com/riverhead-commercial-real-estate/) - [Smithtown](https://sdnyrealty.com/smithtown-commercial-real-estate/) - [Southampton](https://sdnyrealty.com/southampton-commercial-real-estate/) - [Consulting Services](https://sdnyrealty.com/consulting-services/) - [Property Appraisal Services](https://sdnyrealty.com/property-appraisal/) - [Zoning Regulations](https://sdnyrealty.com/zoning-regulations/) - [Forms](https://sdnyrealty.com/forms/) - [Veterans & Military Housing](https://sdnyrealty.com/veterans-military-housing/) - [Join our Program](https://sdnyrealty.com/veterans-military-housing/#apply-now) - [Forms & Applications](https://sdnyrealty.com/forms/) - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Blog](https://blog.sdnyrealty.com/blog) - [Contact](https://sdnyrealty.com/contact/) # How to Refinance your Property’s Mortgage Loan - December 13, 2017 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Finance](https://blog.sdnyrealty.com/blog/topic/finance), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage), [Refinancing](https://blog.sdnyrealty.com/blog/topic/refinancing) - 0 ![How to Refinance your Property’s Mortgage Loan](https://blog.sdnyrealty.com/hubfs/Blog_Images/How%20to%20Refinance.jpg) ![How to Refinance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Refinance.jpg?width=481&name=How%20to%20Refinance.jpg "How to Refinance") Whether you are looking to reduce payments, lower your interest rate, change mortgage companies or take out cash for a large purchase, a [mortgage loan](https://blog.sdnyrealty.com/blog/how-to-get-a-mortgage) is a productive way to save money—but only if you take the right steps. Start by consulting this guide to figure out exactly how to refinance your mortgage. ## How to Refinance a Mortgage: An Official Guide ### The Essentials of a Refinance People will often refinance their home to receive a better interest term and rate in the hopes that it will save them more money in the long run. ![How to Refinance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Refinance1.jpg?width=320&name=How%20to%20Refinance1.jpg "How to Refinance") #### Why Refinance? When you first purchase your home and receive a [mortgage](https://blog.sdnyrealty.com/blog/mortgage-broker), your rate and interest are decided by your credit score, which changes over time. As you progress throughout your career, making money and paying off bills, you may gradually increase your credit score. So, if you decide to refinance your mortgage and have a significantly better [credit score](http://www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx) then you did when you first purchased the home, you could be in line for a much better rate, which can potentially save you thousands a year. Similarly, as a homeowner, you are always putting money in to improve the [value](https://blog.sdnyrealty.com/blog/10-not-so-costly-improvements-to-increase-your-home-value) of your home. So, if you are refinancing and get an appraisal, your value will be much higher than when you purchased it. As the appraised value rises, the balance owed on your home will decrease. Lastly, since rates are always changing, you can always refinance to capitalize on a better one. ![How to Refinance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Refinance2.jpg?width=320&name=How%20to%20Refinance2.jpg "How to Refinance") ### The Steps Basically, when you refinance, you pay off your first mortgage by taking out another loan. But first, before you begin the process, it’s important to be familiar with the entire procedure, from start to finish. - When you decide that it’s finally time to refinance, your home will be professionally appraised to figure out its value. - Afterwards, the lender will determine the exact percentage of the appraisal that they’re willing to pay and come up with the final loan figure. - The balance of your first mortgage will then be subtracted from your new rate. - However much is left will be your new loan, to be paid off at a certain rate over a defined period of time. It may seem like a complex process, but it can really just be boiled down to a few quick, simple steps.   ![How to Refinance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Refinance3.jpg?width=320&name=How%20to%20Refinance3.jpg "How to Refinance") ### Do you Qualify? Contrary to popular belief, not everyone is eligible to refinance their home’s mortgage. There’s certain criteria that you must fulfill first. For instance, if you are unemployed, you’re probably not going to be able to refinance your loan. [Equity](https://www.bankofamerica.com/mortgage/learn/what-is-a-home-equity-line-of-credit/) and credit score also play a large role. Basically, if you have at least 10 to 20 percent equity in your home and your credit score is above 740, you’re in good shape to refinance. If not, you still have some work to do. If you’re curious about how to refinance your mortgage loan, these tips should do the trick! --- [![Join The Commercial Courier](https://no-cache.hubspot.com/cta/default/432922/d68af3fc-de89-4dd0-bc71-e7dba2bb02f5.png)](https://cta-redirect.hubspot.com/cta/redirect/432922/d68af3fc-de89-4dd0-bc71-e7dba2bb02f5) ### Tags: - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate) - [Finance](https://blog.sdnyrealty.com/blog/topic/finance) - [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage) - [Refinancing](https://blog.sdnyrealty.com/blog/topic/refinancing) ### [Previous post](https://blog.sdnyrealty.com/blog/holiday-decorating-tips) #### [Eco-Friendly Holiday Decorating Tips to Save you Money](https://blog.sdnyrealty.com/blog/holiday-decorating-tips) ### [Next post](https://blog.sdnyrealty.com/blog/residential-real-estate-investing) #### [How to Get Started with Residential Real Estate Investing](https://blog.sdnyrealty.com/blog/residential-real-estate-investing) ### Related posts [![How a Home Appraisal Determines Residential Property Value](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Home%20Appraisal.jpg?width=768&name=Home%20Appraisal.jpg)](https://blog.sdnyrealty.com/blog/home-appraisal) - September 26, 2018 - [Buying](https://blog.sdnyrealty.com/blog/topic/buying), [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Selling](https://blog.sdnyrealty.com/blog/topic/selling), [property value](https://blog.sdnyrealty.com/blog/topic/property-value), [Refinancing](https://blog.sdnyrealty.com/blog/topic/refinancing) ### How a Home Appraisal Determines Residential Property Value Appraising a property plays a significant role in the real estate industry. While appraisals are used for a wide variety of reasons, one thing is... [Continue reading](https://blog.sdnyrealty.com/blog/home-appraisal) [![How to Paint your Home or Apartment: A Beginner’s Guide](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Paint.jpg?width=768&name=How%20to%20Paint.jpg)](https://blog.sdnyrealty.com/blog/how-to-paint) - September 05, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [property value](https://blog.sdnyrealty.com/blog/topic/property-value), [home improvement](https://blog.sdnyrealty.com/blog/topic/home-improvement), [interior design](https://blog.sdnyrealty.com/blog/topic/interior-design) ### How to Paint your Home or Apartment: A Beginner’s Guide Whether it’s the wall, trim or ceilings, painting the interior of your home or apartment isn’t such an easy project. From preparation to execution... 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