Mortgage Refinance Benefits

Whether or not you own a home, you have most likely heard lots of discussion about the housing market and how drastically it has changed over the past few years. Homes have lost significant portions of their value, developments and new home projects have been discontinued, and people who purchased homes years ago are foreclosing and leaving their properties due to lack of funds and previously high prices. The change in economic forecast is a good thing, however, for those who own their homes and are able to make monthly payments because they have the opportunity to refinance their loans and take advantage of lower interest rates.

Refinancing you loan can help you with the following:

• Receive a lower interest rate on your loan that will help lower your monthly and overall mortgage cost.
• Decrease the length of your mortgage and pay it off more quickly.
• Increase the length of your mortgage and spread out the costs for a lower monthly payment.
• Change the terms of your mortgage from adjustable rate to fixed or vice versa.
• Refinance for a higher amount to take advantage of your home equity to help pay for medical bills, education, home renovations and other expenses.

When purchasing a home, factors such as credit and down payment amount influence the interest rate that you receive on your loan. If your financial situation has improved since the inception of your loan, you are most likely able to qualify for a lower interest rate or a longer term loan that will lower your monthly payments significantly. There are many factors to consider when refinancing, and the process may seem daunting or overwhelming. Call us if you have questions: 800-960-2850.

What Exactly is a Refinance?

A refinance is trading out your old mortgage for a new one with updated terms and conditions. Generally a refinance consists of trading your old mortgage for a new one that gives you a better interest rate and typically saves you money and makes it easier to pay off your loan.

What are Some Benefits of a Refinance?

Saving money is the number one reason that people refinance their homes. This can be done in many ways, whether reducing your interest rate or extending your loan term so that your monthly payments are lower. People also refinance to cash out the equity that they have built up in their homes, which allows them to use the money to pay off other bills and expenses.

Am I Eligible for a Refinance?

Simply having a mortgage on your home doesn't mean that you will qualify for a refinance. A qualified lender will need to do an analysis on your home value, income, debts, assets, property value and borrowing amount before you will be considered eligible for a refinance. Many people don't qualify for a refinance simply because they are underwater on their loan, or the refinance process will cost so much that they won't save enough on the home loan to recoup the cost.

Talk to a Real Person! Call 800-960-2850

Speaking with a qualified lender is the best way to determine if you would benefit from a mortgage refinance. A lender will be able to do all of the mathematics to help you decide if you will be able to save money on your home. Take time to research and decide what your financial goals are and if you can save with a mortgage refinance.