Refinancing: What is Actually Required and How Does it Work?

[Thomas O'Donnell]

Whenever we hear about investing in real estate, the topic of refinancing at a later date always comes up. Now this can be for a BRRRR, if rates fall and you're trying to obtain a lower rate, or for some other reasons. But no one ever talks about how refinancing actually works and what is required in order to refinance your mortgage. Now let's say someone bought with a high rate (7-8%) during 2022, and they are looking to refinance into a lower rate come 2023 or 2024 when rates drop (I believe they will, but who am I?). How would one go about this? What is required in order to refinance your property, and what are the steps that actually occur? Are there costs that people should be aware of? Any limitations or cases where you either cannot refinance or it wouldn't make any sense to? I feel like no one ever really digs deep into these questions to explain how it all comes together. Asking for all of those who are wondering the same thing.