The term REFINANCE can be misleading.
It doesn’t involve re-working an existing mortgage, but rather taking out a brand new loan.
In fact, the refinance process is very similar to the one you went through when getting your original mortgage. You will have to submit much of the same paperwork and go through the same process of evaluation. Start the process by filling out our Online Loan Application>>
How to Know When It’s a Good Time to Refinance
With interest rates hovering around 4%, a 60 year historic low, home owners are refinancing their loans in record numbers. So, how can you know if it’s the right time for you to refinance?
When you purchased your home, the financial environment and factors like your credit rating and the amount that you could pay for a down payment influenced the interest rate that you qualified for.
If your financial situation has improved since then or interest rates are lower, you would probably benefit from going through the refinance process and trading up to a better mortgage.
Russ Schreier explains how home owners are saving money by refinancing their loans at today’s low interest rates.
Reasons Home Owners Choose to Refinance
Save Money on Interest Payments
By refinancing to a more favorable deal, you can save a lot of money over the life of your loan. With a significant rate drop, you can save thousands and thousands of dollars over the full term of your loan.
Lower Monthly Payments
While experts recommend that you keep your mortgage payment around one third of your gross monthly income, many homeowners are paying too much for their mortgage loans. By refinancing and taking advantage of today’s low rates, people are able to dramatically reduce their monthly payments and get a better handle on their budget.
Not only can refinancing help lower your monthly mortgage costs, it can also help you manage your other debts. When you refinance your home, you may be able to consolidate your credit cards or car loans into the mortgage payment. Typically, you will be able to get a lower rate and decrease your debt more quickly. Another side bonus: mortgage interest, unlike credit card interest, is usually tax-deductible.
Home & Life Projects
One of the most common reason people refinance is so that they can make improvements to their home. By taking the equity of of their home, they can get the extra cash they need for repairs or big purchases, like college tuition.