Arizona Refi: Refinance Your Home with AZWM and Save.

We realize that this is a long article that is sometimes confusing and almost always boring!  If you would rather just speak to a human being instead of reading about refinances, just call us at (877) 551-8188.  Press "1" to bypass the voicemail system and get a loan officer on the line immediately.  We're always happy to help answer refinance or any mortgage-related questions.

The Cash-Out Refinance (sometimes called a debt consolidation refinance)

Of course, like most anything, there are advantages and disadvantages to a cash-out refinance.  One disadvantage is that they usually have higher interest rates than a standard rate & term refinance.  On the other hand, one advantage is that-- even with the higher rate penalty for cash out-- this is still almost always the best way to borrow money, regarding interest rates.  It will likely be impossible to find a lower interest rate when cash is needed.  In addition:

The interest on a first mortgage refinance is always tax-deductible.  If you take out a second mortgage, unless you use it for home improvements, you cannot take the interest as a tax deduction.  So, for example, if your refinance is for the purpose of paying off credit card and other debts, you will get a tax deduction that you would not get with any other type of loan.

A refinance on your first mortgage will be slightly more expensive then taking out a line of credit.  However, those additional costs can be rolled into your new refinance, so it is not as though you need to dip into your savings.  The costs of a refinance include Arizona title insurance and a full appraisal of your home (about $350).

When refinancing in Arizona, you have 3 days to cancel.  You have three days to look over the paperwork and be sure that you made the right decision to refinance.  Even after you sign all of the paperwork at the title company, you still have the right to cancel for thee days, until midnight on the third day.

The Arizona Rate & Term Refinance

The "Rate & Term" refinance is the type of refinance in which you simply lower your interest rate.  For example you currently have a 7% interest rate and you refinance it to 6%- it's that simple.

You can have a rate & term finance with zero costs or you can actually pay extra to "buy down" your rate.  However, the question that we get asked the most is, "Do you have no-cost refinances?"

Yes, we do.  However, when you refinance your mortgage, genuine, legitimate fees are generated.  For example, the title company- which has nothing to do with the bank- needs to get paid.  The appraiser needs to get paid.  So how can a lender offer a no-cost refinance?

"Zero-cost" refinances are really a misnomer, because there is a cost- you will always get a higher interest rate on a zero cost refinance. Sometimes this is ideal!  If you plan on fixing up your home and selling it in a year, you don't want to invest a couple of thousand dollars into closing costs to get a lower rate, because you won't be in the home long enough to recoup your closing costs.

How much you pay for closing costs is entirely up to you.  As mentioned above, you can have a zero-cost refinance (great for short-timers) or you can pay points and buy down your rate.  If you plan on staying in the house for at least five years, you will be much better off paying closing costs and getting the lowest possible rate.  You pay more up front, but in the end, you save so much more on your monthly payment that you will usually break even in several years.  We will help you figure out your "break even" point for every single loan.  You tell us how long you plan on staying in your home and we will recommend the most logical refinance options.  And, we will make sure that you understand.

How quickly can you close my Arizona refinance?

Most refinance loans close within 30 days.  (Updated 08-01-09)