Refinance
Refinancing Options That Fit Your Needs
There are many options when it comes to refinancing your home lone and it can be difficult to choose which one may be the right for you. As a result, our main concern is that we help find the best loan program that will fit your needs.
Reasons to Refinance
To help find find the right home loan for you – we want to understand why you want to refinance in the first place. Believe it or not, there are many times when refinancing may not even be the best option for you. Either way, here are some of the most common reasons why people choose to refinance:
- Lower monthly payments
- Lower Interest Rates
- Shorter Mortgage Terms [Pay off their home sooner]
- Transition into a Fixed-Rate Mortgage from an ARM
- Debt Consolidation [ credit cards, auto loans, etc...]
- Home Improvements
- Liquidity to Invest [ Real Estate, stocks, bonds, etc...]
- Eliminate Student Loan Debt
- Pay Medical Bills
These are some of the many reasons to refinance – as you can see, the list could go on and on. As mortgage planners, we make sure to find a loan that will meet these needs.
Refinance Options
There are two main options when refinancing. The first is a “Refinance Rate & Term”, while the second is a “Refinance Cash Out”.
A cash-out refinance is when more than 2% or $2,000 is received from the equity of your home. If you were looking to pay off debt or looking for liquidity to invest, your refinance would most likely be classified as a cash-out refinance
A Rate & Term Refinance is when you simply refinance your current home loan to a new home loan that either carries a lower interest rate or shorter mortgage term. The most common Rate & Term refinance is when people are looking to lower their interest rates and lower the monthly mortgage payments. In addition, sometimes people are just looking to pay off their home sooner and may acquire a 10 or 15 year loan instead of a traditional 30 year home loan. Keep your eyes open and watch those interest rates – as dropping rates can lowering your interest rate and paying your home off sooner.
Even More Options. Well this is great news for you, but sometimes the choices can be overwhelming. What we find to work best is a plan that is unique and custom tailored to your needs. In every refinance transaction, we make sure to cover these choices as well as making our own recommendations. To find out more information, feel free to contact us or schedule an appointment.
