Does it make sense to refinance?
The mortgage market experiences constant fluctuations: interest rates rise and fall, home values change, and new loan programs are introduced to keep up with the needs of buyers. When a homeowner sees an opportunity to improve the terms of their current home loan, they may choose to refinance.
For most refinances, or refis for short, you'll work with a Loan Officer to determine what type of refinance you might benefit from, apply for credit approval, provide documentation of your income and assets, and usually have a new appraisal performed. There may be some closing costs for you to pay. Is it worth the trouble? Your Loan Officer will help you determine that in a complimentary consultation! Just have your current mortgage statement handy and give a Loan Officer a call!
You might choose to refinance to:
- Secure a lower monthly mortgage payment with a rate refinance
- Change the length of the loan's life with a term refinance
- Pull money out of the home's equity with a cash-out refinance
- Utilize equity built to consolidate higher-interest debt
- Combine a first and second mortgage when equity allows
- Finance a home remodel project with a renovation refinance
- Reduce uncertainty by converting from an Adjustable Rate Mortgage (ARM) to a fixed-rate loan
- Potentially eliminate monthly mortgage insurance
- Switch from a higher interest rate Jumbo loan to a lower rate Conventional loan when the loan balance becomes low enough
- Add or remove a co-borrower while changing the loan's terms
A Conventional Refinance may be used to lower payments, consolidate debt and in some cases remove mortgage insurance.