Refinance Loan Frequently Asked Questions

Is refinancing right for me?

Whether you should refinance or not really depends on your goal and available options. If your goal is quick cash from available home equity, a refinance loan could be the best option—even for someone who's been told they have "bad credit." Many homeowners with less than perfect credit actually qualify for a prime loan.

If your goal is to lower your mortgage interest rate or monthly payments, then you may need the help of a mortgage expert to compare all your options. Call Countrywide to speak to a Loan Consultants at 1-800-909-8217. Get helpful advice about rates, discover if refinancing would be the best option for you, even learn your credit score—right over the phone. We won't recommend a refinance loan unless we know it can help you meet your needs and help you realize your dreams.

What is the difference between a home equity loan and a refinance loan?

Both home equity loans and refinancing can allow you to tap into the available equity or value you have in your home. Your home's equity is the difference between its current value and the amount you still owe on your home loan.

Both a cash-out refinance and a home equity loan allow you to access your home's equity. The difference is that a home equity loan or line of credit is a second mortgage. When you refinance, you replace your current home loan with a new first loan.

A refinance loan offers additional benefits that a home equity loan does not. It can allow you to adjust the rate and terms of your home loan, potentially reducing your interest rate and monthly payment. For example, you could refinance to change from an adjustable rate to a fixed rate or from a 30 year to 15 year mortgage.

Read more about home equity loans and refinancing to find out which best fits your needs.

How much equity do I have in my home?

Equity is based on the current value of your home minus the amount of all loans secured by your home.

Can I use a cash-out refinance loan to consolidate debt?

Yes! A cash-out refinance loan is a terrific option for debt consolidation. You can combine all of your high rate credit card debt, car loan or other personal loans into one monthly payment, potentially at a substantially lower interest rate and total monthly payment. Tax benefits typically apply as well—ask your tax advisor for details. The expert Loan Consultants at Countrywide Bank’s Full Spectrum Lending Division are eager for the opportunity to assist you to put financial difficulties behind you. Call 1-800-909-8217 for a FREE, no obligation consultation.

Do I need to pay closing cost when refinancing?

Yes, typically a refinance loan involves closing costs. But these costs can often be added to your loan balance in exchange for a slightly higher interest rate, meaning no cash comes out of your pocket to pay these costs. Call 1-800-909-8217 for a FREE, no obligation consultation with one of our experts, who can help you run the numbers. Even with closing costs, the savings and peace of mind you gain may make it worthwhile. Learn more about closing costs.

If I have bad credit, can I still get approved to refinance my home loan?

Don't let another lender's lack of flexibility or inability to offer a full spectrum of loan options rob you of hope! At Countrywide, we don't label people with the term "bad credit." We understand that people have financial setbacks that can lead to credit challenges. We look at more than just your credit score and understand that your future is more important than your past. Call today. You may qualify for a prime loan.

Give one of our helpful Loan Consultants a call today at 1-800-909-8217. Countrywide will discuss the home loan options that are right for you. Where another lender might see "bad credit," we see an opportunity to help another customer put their financial difficulties behind them. Don't wait. See if you qualify for a prime loan today!