Refinancing

What is Refinancing?

Refinancing is the process of replacing your mortgage loan with a new one to reduce monthly payments, lower your interest rates, or use equity for extra cash to make large purchases. Sounds like a win-win situation, right? We think so. There are two main types of refinance:

• Rate-and-Term - This option allows you to refinance the remaining balance on your current loan, which means you can take advantage of lower interest rates or a shorter term. A rate-and-term refinance is ideal for anyone looking to pay off their mortgage sooner, build equity faster, or save money overall. And really, who wouldn't be interested in doing those things?

• Cash-Out - This option involves taking out a mortgage greater than the remaining balance on your current loan; this allows you to use your equity as a cash advance to put toward home renovations or other expenses. A cash-out refinance is ideal for anyone who has built some equity and is looking to make major home improvements, pay off credit card debt, or make a large purchase.

 

Should I Refinance my Mortgage?

What a good question! Many homeowners wonder if a refinance might be a good decision. It's really a personal choice but, in general, it may be a wise move if you can lower your interest rates at all, and if you plan to stay in the home long enough to recover the closing costs associated with refinancing - referred to as the break-even point.

Been paying the same amount for years? Our Refinance Calculator can help you determine what your new monthly payment might be.

 

Get started by finding a mortgage loan professional in your area!