Phoenix Refinance

Home loan refinancing replaces your existing mortgage with a new one, lowering your monthly mortgage payment by offering you a better interest rate. Our friendly mortgage advisors can assist you in finding the right product to meet your financial goals.

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Our Phoenix Mortgage Refinancing Options

Our team of mortgage loan officers will assist you in finding the right Arizona mortgage refinance for your needs. 

Phoenix Refinancing Process

Reduce your stress by performing the refinance process online, from getting pre-approved to selecting your closing date. 

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Optimizing Your Phoenix Home Refinance Experience

With mortgage refinancing, you close out your old mortgage and open a new loan with lower rates. If you choose a cash-out refinance, you’ll receive a lump sum payment of your home’s equity, which you can use for other needs, like a down payment on your dream home. 

Why Refinance Your Phoenix Home?

One primary reason to refinance your property is to reduce your mortgage payments by accessing lower mortgage rates. By getting a lower rate, you reduce the amount of interest you pay over the life of your loan, potentially saving you thousands of dollars. 

You can also explore different home loan options, such as switching from an adjustable-rate loan to fixed rates. If you’re unhappy with your current mortgage servicer, a refinance allows you to choose from other lenders that may better meet your needs. 

In addition to enjoying a lower monthly payment thanks to a better mortgage rate, those with significant home equity can select a cash-out refinance to receive a lump sum payment. This is often a better option than renovation loans or a home equity loan for home improvements. You can also use the loan amount for debt consolidation or for a down payment and closing costs on a new home purchase. 

When Should You Refinance Your Home in Phoenix?

Your decision to refinance your Phoenix, Arizona mortgage loan depends on the current rate for mortgages and your personal circumstances. Firstly, you want to seek out better mortgage rates to reduce your payments; generally, a 0.5% lower rate can justify the cost of a refinance.

If your credit score has improved and you’ll have a better chance of getting the best deal on a new loan, refinancing can be a smart way to leverage your stronger borrowing profile. You may also consider refinancing your loan if your adjustable-rate loan is about to rise. You can swap it out for a new fixed-rate loan and lock in your rates.

Lastly, the choice to pursue a cash-out refinance depends on how much home equity you have. Those who have an 80% loan-to-value ratio or lower and who would get better interest rates may find it’s a great time to refinance. 

Why Choose Arnaiz Mortgage for Your Phoenix Refinance Needs?

Arnaiz Mortgage is here to assist you with all aspects of completing a refinance mortgage application. Our goal is to find the right refinancing choice for your house, whether that is FHA loans, VA loans, or a conventional refinance. We’re familiar with the Arizona market and have connections with numerous mortgage companies throughout the state. 

We’ll match you to a lender who suits your needs and find rates that match your credit history so that you can pay less in interest over time. You’ll receive helpful advice about refinancing, and we’ll answer any questions you may have about replacing your current mortgage. 

At Arnaiz Mortgage, we believe trust is a crucial part of the home loan process, so we strive to remain responsive and attentive to your needs throughout your application.

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Frequently asked questions about Phoenix Refinance

  • How do I know if refinancing my Phoenix home is a good idea?

    To determine whether it’s a good idea to refinance your Arizona mortgage loan, you can calculate the breakeven point. This is when the costs of refinancing are canceled out by the savings produced by the lower interest rate. 

     

    To calculate this, add up the refinance closing costs, then divide it by the monthly savings in your mortgage payments. This will tell you how many months it will take for the savings to balance the upfront expenditure. If you intend to stay in your home longer than this time, then refinancing the home loan could be a good idea.

  • What are the current refinance rates in Phoenix?

    Currently, mortgage rates in Phoenix, Arizona, range from the high 5s to the high 6s.

  • How much can I save by refinancing my mortgage in Phoenix?

    Your savings depend on how much your interest rate is lowered and your loan amount. For example, if you qualify for a 1% lower interest rate, you could save hundreds or thousands depending on your loan amount. Your loan amount is a crucial factor in determining your savings. For example, 1% of $75k is $750. However, 1% of $800k is $8000. Your lender can help you determine the exact amount you can save based on your personal loan and current interest rate.  

  • What are the eligibility requirements for refinancing in Phoenix?

    You should have a loan-to-value ratio of 80% or lower, though some lenders will accept an LTV of up to 95%. 

    You should generally have a 640 credit score or higher, but we can go as low as 500 for some situations. Your debt-to-income ratio should be around 43%. Some lenders will accept a debt-to-income ratio of up to 57% if you get a Federal Housing Administration (FHA) or VA refinance. Your ability to refinance often depends on your specific situation, so it’s crucial to contact us to determine if this is an option for you. Our experienced experts will make a decision based on your personal situation. 

    Your house will need an appraisal to determine its current value, and you will need to provide information such as pay stubs, tax returns, a list of your debts, and a credit history.

  • How long does the refinancing process take in Phoenix?

    A mortgage refinance takes between 30 and 45 days, which is a bit faster than the original home purchase because fewer parties are involved. However, the underwriting process is similar and can take several weeks.

  • What are the costs associated with refinancing a home in Phoenix?

    As with other loans, you should expect to pay closing costs, which compensate the lender for underwriting and preparing new mortgage documents. Usually, these are around 2 to 6% of the total loan amount.

  • How does refinancing affect my home equity in Phoenix?

    If you select a rate-and-term refinance, then your home equity is not impacted, as you are not borrowing against the equity. However, if you select a cash-out refinance, you borrow against the home’s equity to receive your payment.

    A refinance also requires an appraisal, which may identify more equity than you expected if the market has been expanding rapidly.

  • Are there any government programs for refinancing in Phoenix?

    Several government refinance programs exist in Arizona, including the FHA Streamline Refinance, the VA IRRRL Refinance, and the USDA Streamline Refinance. These programs are often approved faster as they require less paperwork, and you will often get lower interest rates with them, too. 

    Our team can assist you in selecting between these mortgages and finding the right lender for your needs.