Refinancing Your Home
It’s important to review your existing mortgage loan in comparison to what current interest rates are available. Depending on your circumstances and goals, it may be a good time to refinance your loan.
We created the following information to help you determine whether it may make sense to refinance your mortgage loan, and what you can expect during the refinancing process:
One of the most common questions you may have as a homeowner is whether it makes sense to refinance your current mortgage loan. While every individual’s situation is unique, there are common scenarios when refinancing can be a good idea.
- Get a lower interest rate. Lowering your rate by as little as 1% can make a substantial difference in the amount of interest you will pay over the life of your loan.
- Switch from an adjustable-rate mortgage to gain the security and peace of mind that comes with a fixed-rate mortgage.
- Switch from a balloon mortgage before the entire balance of the loan becomes due.
- Consolidate first and second mortgages into a single mortgage with a lower interest rate.
- Pay off your mortgage faster by shortening the term of your loan.
- Gain access to your home’s equity to fund important family expenditures, help pay for college, pay off high-interest credit cards or reduce other debts.
Sometimes refinancing your home loan is not the best choice. It could make sense to wait if you have a prepayment penalty clause within your current mortgage that is still in effect. Or it may be possible to meet your financial goals in other ways, such as keeping your existing mortgage in place and getting a home equity line of credit or a second mortgage.
If you have any questions about what the right choice might be for your unique situation, call one of our Mortgage Loan Originators.