Refinancing

Refinancing a Home Mortgage

Refinancing a mortgage involves many of the same steps you encountered when you purchased your home, plus there may be a few new steps involved – if you’re consolidating your home loan with other debts, for instance. To help you navigate the refinancing process, we’ve prepared this checklist of what’s involved.

For more information, or to get your refinancing process started, visit a Comerica banking center or
call an experienced Comerica Mortgage Loan Consultant at

800.867.5188

How Does Refinancing a Mortgage Work?
Refinancing means that you pay off one loan with the proceeds from a new loan using the same property as security.

To begin the refinancing process, have the following prepared:

  • The specific documents you will need vary depending on your location and loan program, but generally, have available: proof of income, home insurance, and title insurance; and information about your assets.
  • Have a copy of the deed to your home and a copy of your title policy at hand.
  • If you're applying for a cash out refinance loan, provide the lender with a letter stating how you intend to use the money.
  • Request a payoff statement from your current lender that includes the daily interest rate. You may need this prior to closing.
  • Contact your title company to discover what documents they need. That may include documents from your current lender, your municipality and others. In some states, a survey is required and must be given to the title company in advance of closing.

Our experienced Comerica Mortgage Loan Consultants are ready to help you get the
mortgage process started. Visit a Comerica banking center or call us at

800.867.5188

Benefits of Refinancing
Some people refinance to take advantage of lower interest rates, while others may do so to get money for a home improvement project. Whatever your goal, you’ll want to make sure the home refinance option you choose fits into your larger financial plan and will truly benefit you in the long run.

Whether through reducing your interest rate or extending the length of your loan, refinancing your mortgage to get lower monthly payments can offer a variety of benefits you may not have considered.

  • Monthly Savings: Lowering monthly payments gives you a little more money each month that can be used for a variety of daily expenses – retirement savings, a college fund, a vacation, home improvements and more.
  • Long term savings: If you are lowering your monthly payments by lowering your interest rate, you may save money each month and over the life of your loan – but remember that your interest rate is only part of the story. You should verify that the overall savings outweigh the refinancing costs.
  • Apply savings to debts: You can also apply what you save each month to the payment of other debts – either directly through the increased money you have available or through a debt consolidation loan.
  • Fix your Rate: Extra cash flow is just one potential benefit to mortgage refinancing. Depending on your financial situation and loan product, you might be able to switch to a longer term or different type of mortgage – for instance, from an adjustable rate to a fixed term loan.
  • Other Benefits: If your property’s title insurance policy was recently issued, you might qualify for a reduced reissue or refinance rate. Additionally, depending on your loan type, how much you’ve paid off and payment history, you might be able to drop the cost of your private mortgage insurance (PMI).

If you’d like to determine whether refinancing for a lower rate will work for you, talk with
one of our experienced Mortgage Loan Consultants at your nearest banking center or call

800.867.5188

For more information about the potential benefits and outcomes of refinancing, we have the following resources:

Refinance Your Mortgage

Checklist: Refinance

The Costs of Refinancing a Mortgage
Refinancing costs and fees have the potential to add to the total new loan amount, so it’s important to ask yourself if the savings from the new loan will be equal to or more than the cost of refinancing.

Also note that refinancing costs vary from state to state and can include:

  • A loan origination charge, along with fees for application and processing.
  • Points that can be purchased to lower your interest rate even more (each “point” is 1% of your loan amount). 
  • Any penalty for early payment on your current mortgage.
  • Standard settlement charges, including fees for credit reports, title searches and insurance fees, and appraisals.

Your current loan may also include penalty fees for early payments, which could add to your refinance costs.

Contact an experienced Mortgage Loan Consultant at your nearest
banking center or call 800.867.5188 to prepare for all the scenarios.