5 Reasons to Refi
Lower Your Interest Rate
This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.
Build Equity Faster
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program to a 15- or 20-year loan structure. This enables you to build equity faster and save money on financing fees.
Change Your Loan Program
Some homeowners who start out in an adjustable rate mortgage (ARM) find that they would like to switch to the stability of a fixed rate mortgage. A loan comparison chart can help you find out if you can save money with another type of loan program.
Take Advantage of Improved Credit Score
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.
Use the Equity You’ve Established
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off debt, send a child to college, or use the money for home improvements. And, if you are currently paying for mortgage insurance and your loan-to-value has decreased, you may qualify for a loan without mortgage insurance.
Lower Your Payment
Wondering if there’s a way to lower your monthly mortgage payment and reduce your monthly out-of-pocket expenses? The good news is that there isn’t just one way. There are several factors that can help.
Improved credit score
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.
New loan program
We can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for you right now.
Lower interest rate
Securing a lower interest rate can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees over the life of the loan.
Debt Consolidation
If you’ve been feeling overwhelmed by your monthly expenses—or finding yourself just scraping by each month—refinancing your home may be a great solution for you.
Benefits of debt consolidation
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Consolidating your debt into a refinanced mortgage offers several benefits.
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First, you can get rid of high interest charges you may be facing on credit card accounts.
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Second, you can save time and money by only having to make one payment each month.
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Third, you can consider increasing contributions to your retirement account or your rainy day fund (and even tackling that home improvement project you’ve been meaning to do!).
It’s important to make smart decisions with the money you will save each month. There are many ways you can make your home’s equity work for you.
Cash Out
If you already have substantial equity in your home, you can access it through a “cash-out refinance” mortgage.
What is home equity? Home equity is the difference between your home’s fair market value and the total balance of any liens or mortgages on your home. Think of it as your ownership interest in your home.
Home equity accumulates in four ways:
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Money committed in the original down-payment
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Appreciation in the local housing market over time
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Physical improvements or renovations to the home
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Principal payments on the mortgage itself
Through these four avenues, cash value—or equity—steadily builds up in the property.
Putting your equity to work for you
The good news is that the cash in your home doesn’t have to stay “buried.” If you’ve been thinking about paying off credit card debt, saving money for your children’s college, making home improvements, or adding to your retirement fund, you can put your equity to work for you.
In addition, if an unforeseen expense arises—or your employment situation changes—your home’s equity can help.