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Refinancing: Frequently Asked Questions

Should I refinance my mortgage?
What will I pay in closing costs?
Do I need a certain amount of equity to refinance?
How will a prepayment penalty affect my refinance?
Should I prequalify before refinancing?
How can I lock-in my interest rate?
Is an appraisal necessary when I refinance?
How does the closing work in refinancing a mortgage?
Can I view my mortgage information online?
Have a question that was not answered? Contact us with any questions you may have.

Should I refinance my mortgage?
There are four benefits of refinancing:

  • Lower your interest rate.
  • Reduce your monthly payments.
  • Pay off your Current mortgage quicker.
  • Use the equity in your house.

Many factors come into play to determine if refinancing is right for you. You may use the calculator below to help determine if now is a good time to refinance.

Calculator: Should I refinance my home mortgage?

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What will I pay in closing costs?
Closing costs include lender fees, third-party fees, and pre-paid items (interest, taxes and hazard insurance). The lender should provide you with an estimate of the closing costs soon after your application has been received. If you have a specific dollar amount in mind to borrow, you may request a good faith estimate from the lender that should include an estimate of the closing costs.

Any prepayment penalty on a loan being refinanced will increase the amount required to close. If there is enough equity in the home, the estimated closing costs will change if you change the product type or loan amount. If this should occur, be sure to ask how the changes will impact your closing costs.

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Do I need a certain amount of equity in my home to refinance?
Most lenders require you have between 5 - 10% of equity in your home before attempting to refinance.

Simmons First requires that the loan to value (LTV) ratio not exceed 95%. This means that the amount of the new loan must be equal to or less than 95% of the current appraised value.

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How will a prepayemnt penalty affect my refinance?
When you look at refinancing, you will need to consider whether the money you save will outweigh the fees you will pay to refinance. If a prepayment penalty is included in your current mortgage, you will want to take the fee associated with prepayment into consideration in your refinancing decision. Before you refinance, check your current mortgage loan papers for any prepayment penalties.

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Should I prequalify before refinancing?
Prequalifying is a good first step when refinancing. By prequalifying, you will know the amount you can refinance and if refinancing your home is the right choice for you. Prequalifiying also helps the refinancing process go faster and smoother.

Some lenders may charge fees for prequalifying. The fees cover the cost of credit reports and underwriting involved with prequalification. The fees are collected at the time of application. Contact your lender to find out what fees apply to you.

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How can I lock-in my interest rate?
Prequalifying lets you know how much you can afford to refinance, and it makes the final application process move quicker and smoother. When you prequalify, you can request to lock-in the interest rate quoted to you upon approval. A lock period is usually associated with locking in a rate. The lock period specifies how long the rate is locked in.

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Is an appraisal necessary when I refinance?
Yes. An appraisal is used to help determine how much equity you have in your home and the amount for which you can refinance your home

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How does the closing work in refinancing a mortgage?
Closing on a refinanced mortgage is completed the same as closing on a first mortgage. On the closing date, you will read and sign all of the settlement statement and pay the closing costs.

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Can I view my mortgage information online?
Mortgage information is available for viewing online. You may also make payments to your mortgage online from any Simmons First checking or savings account.

If you are currently enrolled in Simmons First Bank Anywhere online service, all you need to do is have your Simmons First mortgage loan added to your existing Bank Anywhere.  Log in to Bank Anywhere Online Banking, select “Services,” and complete the Account Maintenance Request Form.

If you are not enrolled in Simmons First Bank Anywhere online service and you wish to view your Simmons First mortgage loan online, you will need to enroll in the Bank Anywhere online service. Enrolling in Simmons First Bank Anywhere is fast and easy. Click here to learn more about Simmons First Bank Anywhere and the enrollment process. Fees may apply.

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