Refinancing Your Home Mortgage
Refinancing your home mortgage loan allows borrowers the ability to replace an old secure loan with a new loan secured by the same assets The refinancing process is similar to that of what it takes to get your original mortgage loan.
Reason to Refinance Your Mortage
- Lower My Monthly Payment - Due to fluctuations in interest rates, refinancing gives you the ability to lock in a lower interest rates than what your mortgage loan originally started with
- Get Cash Back – By refinancing, you ultimately can save money, thus getting cash back in your pocket.
- Consolidate Debt – Take multiple loans and consolidate them into one easy payment.
- My Credit Score Improved - If your credit score has recently improved, you can be eligible for a lower interest rate on your mortgage.
Benefits of Refinancing
- Refinancing to a shorter term (10, 15, or 20 years) mortgage can save you thousands of dollars in interest.
- Refinance to a new lower rate and maintain your original loan payment thus, more of your payment is going toward principal allowing you to build equity faster.
- Refinance for a higher amount than the principal and use the extra cash to pay for kids college, consolidate debts, home renovations, or anything you may need
- Pay off a higher interest rate loan with a lower rate refinance loan rate. This may also lower your monthly payment and help you save money.
When Should I Refinance
While everybody has their own situation, a couple reasons to consider refinancing your mortgage home loan include:
- There is a change in your financial situation
- When mortgage interest rates fall
- To consolidate debt
Find a mortgage broker to help you refinance your loan.
