Take advantage of our Debt Consolidation and Cash-Out options!
A refinance can not only be used to change your current rate or loan term, but can also allow you to consolidate other debts (credit cards, auto loans, etc.) and/or use your home’s equity to receive cash at the closing table! Our experienced Mortgage Consultants will guide you throughout the process and ensure that you’re getting the best deal possible.
Is it a good idea to refinance your mortgage?
Mortgage refinancing decisions depend on many factors, including how long you want to live there, current interest rates, and how long it will take to recoup closing costs. In some cases, refinancing is a smart decision. For others, it has no economic value.
Since you already own the property, refinancing is probably easier than taking out a loan as a first-time buyer. This makes refinancing easier, even if you've owned property or homes for a long time and built up a substantial fortune. However, if unlocking that equity or consolidating debt is your reason for refinancing, remember that doing so may increase the number of years you pay off your mortgage.
Reason for refinancing a loan:
When does refinancing make sense? The general rule of thumb for "should I refinance my mortgage" is that if the current interest rate can be lowered by more than 1% he might make sense given the money you're saving. Refinancing at a lower interest rate can also help you build your housing wealth faster. If interest rates drop enough, you may be able to shorten the term of your loan without significantly changing your monthly interest rate.
Similarly, falling interest rates can be a reason to change from a fixed rate home loan to an adjustable rate home loan (ARM). In an environment of rising mortgage rates, this strategy doesn't make much economic sense. In fact, with regular ARM adjustments raising mortgage rates, changing your mortgage to a fixed rate loan could be a smart choice.