Refinancing has become more and more common over the recent years due to lower interest rates and the benefits a lower rate has to offer a borrower. When refinancing your mortgage you are paying off your old loan with a new loan with better terms. The goal of a refinance is to reduce your interest rate which will lower your monthly payment. In many cases a refinance could save you hundreds of dollars per month. You may also refinance your mortgage to reduce the number of years you will pay on the loan.
We can provide you with the tools needed to ensure a refinance is the right choice for you. Here are some of the benefits to refinancing your mortgage:
- Reduce your monthly payment – A lower interest rate usually means you will make lower monthly mortgage payments. Changes in market conditions or an improved credit score may allow you to qualify for a lower rate.
- Reduce the term of your mortgage – By reducing the length of your mortgage you will pay less interest over the life of your loan and payoff your mortgage quicker, however it is likely your monthly payment will increase.
- Receive cash from the equity in your home – You can receive cash at closing or you have the option to pay off debt such as credit cards, student loans, car loans just to name a few.
- Combine mortgages – In many cases by combining multiple mortgages into one, you will save on your monthly payment and payoff your mortgages sooner.
- Change in loan type – Many borrowers find themselves refinancing their mortgages to obtain more advantageous financing such as eliminating mortgage insurance or converting from an adjustable rate mortgage to a fixed rate mortgage.
** Many loan types such as FHA, VA, and USDA have streamline refinance options that do not require an appraisal nor do they require income documentation. Refinancing does have costs involved; however these costs can typically be included in your new mortgage.Apply Today
The information contained within is not intended as a loan commitment and not all applicants will qualify. Loan approval will be based on each borrower(s) credit, income, employment, and assets. Programs, rates, terms and conditions are subject to change without notice, please call us for more information.