Debunking 3 Common Myths about Refinancing: Our Guide

So, you’ve finally made the decision to refinance your mortgage loan. Whether you’ve heard about the opportunity from a friend or read about testimonials on the web, using the process in question will always make sense because of the benefits involved. Considering that today’s economy makes way for easier processes and lower rates, not refinancing your mortgage would equate to a missed opportunity that you’re bound to regret. 

Now, before you get in touch with Hawkins Home Loan to help you get the process going, it’s important to understand that there are various factors to consider along the way. Among all the different factors that you’ll need to consider before capitalizing on a refinance, here’s one aspect of the financial opportunity that you should be mindful of: the myths surrounding refinancing.

Debunking a few common misconceptions

Although the mortgage refinancing process seems rather straightforward, the fact is that many homeowners bypass vital details and don’t take things slow when researching. Unfortunately, this same common mistake causes many would-be refinancing applicants to fall for myths, leading to all sorts of problems, such as: 

  • Applying for a refinance when not needed
  • Applying at the wrong time
  • Entering the process with the wrong expectations

To help ensure that you don’t make any avoidable mistakes in your refinancing process, let’s debunk some common myths so that you approach the whole experience from a better-informed standpoint:

Myth #1: “It’s cost-free”

While refinancing can help you save money, it’s not something that’s devoid of costs or extra fees, and this is something that many homeowners fail to understand.

For a standard refinancing loan, there are a handful of different costs and extra figures that you will need to account for when negotiating a shorter loan term or smaller interest rate. If you choose to get your refinancing done, you’ll need to pay for various fees and closing costs, all of which add up to two to five percent of a principal on an existing mortgage! 

Myth #2: “The interest rate matters the most when seeking refinancing”

If there’s any misconception that’s become more bothersome than anything else in the mortgage refinancing world, it’s this myth. 

Here’s the thing: interest rates aren’t the name of the refinancing game because they don’t entirely dictate the possibility of whether or not someone has the best outcome. If you want to make the most out of the opportunity and maximize your savings, you’ll need to avoid the tunnel vision approach. This essentially means that it’s much better to avoid fixating too much on the interest rates of a refinance and look at the possibilities you can achieve with your renewed loan term!

Myth #3: “It doesn’t require a credit check”

As idyllic as it may sound to enjoy the benefits of a mortgage refinance without putting an additional lien on your title, it’s worth noting that this doesn’t equate to an exemption from a credit check. 

Considering that lenders place a premium on analyzing the current state of any applicant’s finances, it’s easy to see why credit scores matter and how they can get you lower interest rates if you’re smart enough about your approach. Fortunately, consulting with Hawkins Home Loans’ experts will allow you to develop the right approach for having the best experience possible long after you’ve been approved for a refinance! 


Getting a refinance for your home loan will always prove itself to be a vital opportunity because of how helpful it can be for your finances and overall repayment experience—but it’s vital to enter the process with the right expectations. By watching out for the three common myths mentioned above, you’ll be able to protect yourself from any inconveniences throughout the process in question! 

Are you looking for a home mortgage loan in Sacramento, CA, to help you get a headstart on your homeownership dreams? Hawkins Home Loans is here to help. Get in touch with us today to learn more about our services!