Are you considering refinancing your mortgage, but are unsure of where to start? We can help!
Here are a few things to consider.
What is a mortgage refinance?
Essentially, refinancing your mortgage loan means that you are replacing your current mortgage loan with a new loan.
What are the costs?
When it comes to costs, we have a variety of options to meet your individual needs. A consultation with one of our experienced Mortgage Loan Officers can help you to determine what is best for you.
The great thing about refinancing is that it can help various people in various ways!
Some clients would like to lower their mortgage payment each month. Others would like to shorten their loan term so they can pay it off sooner. Some even consider a cash out refinance as a way to borrow additional funds for large purchases, education expenses, a huge life change, or other large expenses.
In each situation, refinancing your mortgage loan can help you achieve your goal, whether it be saving money, or borrowing funds.
Is refinancing right for me?
Keep in mind; it doesn’t always make sense to refinance your mortgage. It depends on your current interest rate, loan term, the current rate environment, and what your objective is.
Here are a few things to consider, that may help you to decide if a refinance is right for you:
- Would refinancing your interest rate by .25%, .50%, 1% or more be a long-term benefit?
If so, it could make a big difference in your monthly budget, and significantly reduce the amount of money you pay in interest over the course of your loan.
- Would you like to stabilize your rate?
If you currently have an Adjustable-Rate Mortgage, you may want to consider refinancing to a fixed rate to ease any worries of impending rate hikes.
- Could you handle a larger mortgage payment each month?
By refinancing to a shorter loan term, your payment may be slightly higher each month, but you’ll save thousands in interest and pay off your loan much sooner!
- Has your credit score recently increased?
If your credit score has improved since you first opened your loan, you may qualify for a much lower interest rate.
What does a mortgage refinance entail?
Because refinancing is the process of opening a new loan, to replace your existing mortgage loan, you can expect some of the same things you experienced when you first bought your home – except this time you already have the keys!
You’ll need to apply for a mortgage loan, lock in a rate, get your home appraised, review the loan disclosure, and attend a loan closing to finalize the new mortgage.
While this may seem intimidating or daunting, remember your end goal – a brighter financial future!
If you have more questions about the refinancing process, and would like to learn more, reach out to our experienced team of Mortgage Lenders for more information.