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When you refinance, you replace your current home loan with a new one. Mortgage refinancing requires you to qualify for the loan, just as you had to meet the lender’s requirements for the original mortgage. You file an application, go through the underwriting process and go to closing, as you did when you initially purchased the home.
The Mortgage Refinancing Process
First, let us help get your credit score as high as possible with our Rescore tools so that you qualify for the lowest interest rates. Have a rough idea of the rates and other terms you desire in your new loan. Remember: These terms should represent an improvement on the terms of your existing loan.
Next, McGowan Mortgages will shop hundreds of the best lenders across the country to guarantee your best loan terms. With us, don't just get 1 quote, but get 200+ quotes from one simple point-of-contact.
Don’t open any new credit during the refinancing process; it could hinder the deal.
We'll keep you updated as you go through the process to ensure it's a smooth transaction. You will also be able to skip 1-2 monthly payments in between your current mortgage and the new mortgage, for another built-in benefit of the Refinance
Reasons to Refinance a Mortgage
Lowering your monthly payment
When your goal is to pay less every month, you can either refinance into a loan with a lower interest rate or a longer loan term. However, extending the term means that you pay more interest in the long run.
Paying off the loan faster
You can switch to a mortgage with a shorter term and, as a result, pay less interest over the life of the loan. One downside to this is that your monthly payments will probably go up.
Cashing out
If you have significant equity in your Kansas City home, you may be able to cash out a portion of it with a refinance to pay bills, finance a large purchase, or buy out an ex-spouse in a divorce.
Getting rid of FHA mortgage insurance
Whereas private mortgage insurance (PMI) on conventional home loans can be canceled, you can only get rid of FHA mortgage insurance premiums by selling your Kansas City home or refinancing when you have accumulated enough equity (equity can be calculated by estimating the value of your home, then subtracting your mortgage balance from that number).
Switching from an adjustable rate to a fixed rate loan
Interest rates on adjustable rate mortgages (ARMs) can increase over time, while the ones on fixed rate loans stay the same. If you’re looking for more of a sense of financial stability and would prefer making steady payments on your loan, then you might want to consider refinancing.
Consolidating debts
If you have multiple loans, it might make sense to consolidate them into a single loan; it’s easier to keep track of payments that way.
Different Types of Mortgage Refinancing
Rate-and-Term
With this type of loan, the goal is to change the interest rate, loan term or both without making any changes to the amount of the loan. This option is best if you’re trying to save money on your monthly payment or switch your loan from an adjustable rate to a fixed rate.
Cash-Out
As the name suggests, a cash-out refinance involves cashing out a portion of the home’s equity. Doing so results in a higher loan amount, with the difference typically equal to the amount cashed out. While a cash-out refinance can help Kansas City homeowners get the cash they need for certain activities, it typically results in a higher monthly payment and interest rate than a rate-and-term refinance loan.
Streamline FHA/VA Refinance
If you're currently in an FHA or VA home loan and the market allows for a lower interest rate now, we can do a Streamline Refinance, where you drop your interest rate and monthly payment, but just like it sounds - the whole process is Streamlined and simple. No new appraisal, no new verification of income. We just have to verify that the credit score is still qualifiable, you've made your mortgage payments on time, and the same persons remain on the new mortgage. With that, you have a very simple Streamline Refinance ready to go and a lower rate and monthly payment awaiting you!
Your Kansas City Mortgage Refinancing
Expert: McGowan Mortgages
Contact McGowan Mortgages today at (816) 631-9687.
See What Our Clients Are Saying About Us!
Phoebe Jade Apostol
17:20 04 Dec 23
Jessica Lee
15:50 30 Nov 23
I appreciate the opportunity to share my experience working with the exceptional loan team - Derek McGowan of McGowan Mortgages. Their commitment to clients is evident in their caring approach, efficient processes, and remarkable speed in helping families attain homeownership. It is truly an honor to work alongside someone so dedicated to turning dreams into reality. Derek McGowan and his team are exceptional!
Jennifer Mann
19:53 29 Nov 23
Derek does a great job communicating with his clients, and also the vendors involved in the closing process. He is professional and great to work with!
Robillard Castor
18:00 29 Nov 23
1st home purchase and what an experience! The entire process from Pre-Approval to Funding was Quick, Smooth and Transparent. Joe was awesome! He was very informative answered all my questions and stayed in close contact with me throughout the entire process. Derek was great as well, he kept everyone (Agent, Title Co, Underwriters) on a strict timeline which allowed us to close early! I would recommend McGowan to everyone!
Jeff Greenstein
15:07 29 Nov 23
We just closed a loan for Derek and his team, they were great to work with from a title company perspective.
brad cross
10:39 29 Nov 23
McGowan Mortgages is amazing! The best of the best!
Alisha Brooks
02:26 29 Nov 23
Derek amd his team are fantastic to work with. They are thorough, communicative, and very easy to collaborate with.I have enjoyed the deals I have gotten to work along side them on to get the clients to the finish line of making home ownership a reality.Believe me when I say their main focus is helping their clients to see the reality of their dreams of homeownership come true and it shows in their hardwork behind the scenes.Alisha BrooksAlliance Title
Christine Montiel
20:02 26 Nov 23
We could not have gotten through this process without the entire team's support. So thankful for everyone!
Left 2 Right Detailing
06:03 16 Nov 23
Friendly. Easy to work with.
Jas Benibo
19:47 15 Nov 23
I absolutely love working with Derek at McCowan Mortgages. They have great communication, and even better programs and rates. As a real estate agent, I love sending my clients to McGowan Mortgages because I know they will be greatly taken care of.
Tynisha Watson
04:59 15 Nov 23
McGowan Mortgages stands out for its transparency, knowledge, and excellent communication. This team guides my buyers through various loan programs with expertise, ensuring a smooth process. Their commitment to clear communication, coupled with multiple loan options, makes them an outstanding choice for any buyer. I Highly recommend!Tynisha Watson, Platinum Realty@myrealtortwatson
Yesenia Silva
19:42 14 Nov 23
We are so Glad we found Derek during our house hunting journey. After talking to a few lenders McGowan definitely out beats them all! Being first time home owners the team went above and beyond with explaining the whole process and would answer our calls to answer all our questions which made the process so much easier. We definitely recommend to everyone!
Tim Jones
15:28 13 Nov 23
McGowan has been a great mortgage company to work with. Very attentive to details, great lending partner to work with and have supported our organization with open arms!
Luis Diaz
17:49 11 Nov 23
Joseph Ajja
22:51 10 Nov 23
When I first of McGowan Mortgages I did not know them or feel comfortable with them helping me get into my first home. However, after speaking with Derek and his team and how they answered all my questions I decided to give them a shot. And I will say I was not disappointed not only did they get me a great interest rate but got me into home quick! I would recommended them to anyone looking to purchase or refinance their home! It was an amazing experience working with this company
Alberto Rodriguez
11:54 10 Nov 23
Top partner! Main lender! Wonderful experience so far!
Stacie Green
04:57 10 Nov 23
Derek and his team at McGowan Mortgages go above and beyond to help their clients. He consistently shares information to help buyers and realtors navigate through any market and make homeownership possible. Looking for a lender that will work hard for you; look no further.
Tracy White-Baldrige
03:40 10 Nov 23
You worked very hard for our buyer. You made sure you got her the best rate, and the communication throughout the transaction was exceptional. I'm grateful you were able to get us to the closing table. Thanks for making a difficult deal, easy.Tracy White-BaldridgeReeceNicholsRealtor
Jasmine Rebecca
22:39 09 Nov 23
Derek is a true professional knowledgeable, hard worker and he is here when you need him.Thank you again for everything and for hanging in there with me. I highly highly highly recommend him for your mortgage needs
Jordan Shack
23:04 31 Oct 23
Always great to work with Derek and get his loans closed. He is great to work with and It is all about the teamwork.
Tim Hatton
16:53 24 Oct 23
As a wholesale Partner of Derek and his team, they go above and beyond for the borrower and is nothing short of great to work with.
Roshaun Moore
02:24 24 Oct 23
Ethel Viado
23:15 20 Oct 23
Excellent company with excellent services! I would recommend this company to all my friends! Worth the trust
Sandra rodriguez
22:06 20 Oct 23
Derek and his team are always accessible, communicative, and overall wonderful to work with. I definitely recommend them to anybody looking for a mortgage broker. They care and have access to so many lenders, I'm sure they will find a way to make your file work.
Dina Barreras
21:21 20 Oct 23
Derek and his team are on top of their game! If you are looking for someone to represent you and get you into your dream home, Derek and his team are the ones to go to! They will take great care of you!
Barbara Ferullo
20:54 20 Oct 23
Working with Derek and his team was smooth and easy! They know what they're doing when processing & submitting ~ making it a clean road to the closing table for their customers! Very professional!
Doug Swenson
20:49 20 Oct 23
Derek is great to work with. He is always available to answer any and all questions, picks up my calls and ensures I understand every process of the loan. I always recommend friends and family. Thank you Derek!
Carol Ravert
11:48 06 Oct 23
Kabi Solomon
22:55 04 Oct 23
Derek’s team was phenomenal. From start to finish, very informative, communicative & led with professional advice & experience. We started the process on Aug 29th 2023 & closed on Sept 29th exactly 30 days. The supporting groups (titling/closing) we’re also amazing! Thanks Derek, Steven, Fidel & Team
Lane Barry
22:43 04 Oct 23
Derek and the team at McGowan Mortgages are very pleasant to work with. Always responding to questions and concerns immediately, Derek was able to find us the lowest possible interest rate during these tough economic times and save us a ton of money. They walked us through every step of the home buying process and made it easy to understand while looking out for our best interest. Definitely would recommend
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McGowan Mortgages is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.