Refinancing your mortgage
A lower payment? Pull cash out? Pay off your mortgage sooner? There are numerous reasons to refinance your mortgage and we can help you meet your financial goals.
The basic of refinancing your home loan
Refinancing is the act of replacing one mortgage loan with another with different terms. Homeowners use this tool for many reasons, including to lower their interest rate or to use their home's equity for other purposes. Since there are costs associated with refinancing a mortgage, it's important to know your goal when determining whether you should refinance.
Here are a few of the most popular reasons to refinance:
- Lower your monthly payment
- Reduce your interest rate
- Reduce or remove private mortgage insurance (PMI) payments
- Pull cash out
- Pay off your mortgage faster
- Consolidate debt
If you are considering a refinance, the first step is to research current interest rates. It is important to note that interest rates change on a daily basis, so you will want to lock in your rate once you find a rate you like. Speak with one of our licensed mortgage originators today for current interest rates.
Common mortgage refinance questions
Refinancing your home loan is a big process, similar to the initial purchase of the home. You will want to be sure you understand the entire process before you begin. Here are some of the most common mortgage refinance questions:
What is home equity and how does it impact my refinance? Equity is the difference in the appraised value of your home and the balance of your current mortgage. In most cases, you need to have equity in your home in order to refinance. The more equity you have, the better terms and interest rate that will be available.
How much does it cost to refinance? The costs associated with a refinance vary from lender to lender and depending on the type of refinance. For example, if you use a refinance to pull cash out of your equity, you will end up paying more in the long run. More often than not, the best option is a no-cost loan option, where you have no closing costs associated with the refinance. These are typically the most cost-effective, beneficial loan options for most borrower in the current economic climate.
How to refinance
You have several options when it comes to refinancing your mortgage. From conventional refinances, which typically require more equity, to FHA and VA programs. With an FHA streamline, for example, you can refinance your current FHA loan into a lower interest rate with minimal qualification requirement. If you are considering a mortgage refinance, call us today at (760) 930-0569.