Congratulations! You’re ready to refinance your home…
Refinancing is the process of paying off your existing mortgage with a new mortgage. Typically, you refinance your mortgage to reduce your interest rate and monthly payment or change the length (or term) of your mortgage. You may also refinance to take cash out from your home’s equity to improve your home or purchase another property or even just cash for a rainy day.
Benefits Of Refinancing
Lower your payment
Remove mortgage insurance
Pull out some cash
Re-amortize your loan
If your loan is over 3 years old, you are still paying interest based on your original loan principle…
and you’re paying too much.
Refinancing to re-amortize is only one way to lower your monthly expenses.
Contactless Home Refinance Loans!
With a cash out refinance, you’ll borrow more than the amount you owe on your existing mortgage by tapping into some of your home equity. That extra amount will be deposited into your bank account and can be spent however you’d like. If you’re looking for a purchase an investment property, a cash-out refinance can help you reach this goal.
Lower Interest Rates
A huge benefit of a mortgage refinance is getting a lower interest rate. You can save tens of thousands of dollars over the life of your mortgage loan with a lower interest rate. The lower interest rate will also lower your monthly payment, which will free up more of your hard-earned money to cover other expenses.
Change Your Repayment Terms
If you’re having trouble making your monthly mortgage payments, you may want to consider refinancing to a new 30-year mortgage with a lower interest rate to lower your monthly payment.
Conversely, if you are trying to pay your mortgage off more quickly, you could consider refinancing to shorten your repayment term. The shorter term will make your monthly payment higher, but you’ll end up saving money on interest and get your house paid off more quickly.
Remove Mortgage Insurance
If you put down less than 20% when you bought your home, you probably pay mortgage insurance. Private mortgage insurance (PMI) is paid to the lender to cover them in case the borrower defaults on their mortgage. If you have a conventional loan and know you have 20% equity, you can ask your lender to cancel PMI. However, PMI stays with an FHA loan for the life of the loan. This means to remove PMI, you will need to refinance to a conventional loan.