Is refinancing right for you?
Here are the most common reasons for refinancing:
- You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
- You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
- You have two mortgages and would like to consolidate them into one
- You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
- You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
- You want to move from an interest-only mortgage to a loan that pays down the principal
- You want some extra cash to make a purchase or to pay off other debt
Benefits of refinancing
Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!
Four common
refinancing
options:
Cash-Out Refinance
With a cash-out refinance, borrowers take out a new mortgage that is larger than the balance of their existing mortgage and receive the difference in cash. This type of refinance can be used to pay off high-interest debt, finance home improvements, or cover other expenses.
Rate-and-Term Refinancing
This type of refinance involves replacing an existing mortgage with a new one that has better terms, such as a lower interest rate or a shorter loan term. The purpose of a rate-and-term refinance is to reduce monthly payments or pay off the loan faster.
FHA Streamline Refinance
This type of refinance is available to borrowers with existing FHA loans and allows them to refinance without an appraisal, income verification, or credit check. The purpose of an FHA streamline refinance is to lower monthly payments or switch from an adjustable-rate mortgage to a fixed-rate mortgage.
VA Streamline Refinance
This type of refinance is available to borrowers with existing VA loans and allows them to refinance without an appraisal, income verification, or credit check. The purpose of a VA streamline refinance is to lower monthly payments or switch from an adjustable-rate mortgage to a fixed-rate mortgage.
