Refinancing Your Mortgage
Refinancing your mortgage means replacing your current mortgage with a new one. The new mortgage loan pays off the old mortgage loan, and you’ll start making payments on the new loan. People refinance their mortgages for many different reasons – lowering their monthly payment, getting a better interest rate, taking cash out of their home for home improvements, shortening their loan term, or a combination of the above.
If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan or to extract cash equity in your home (cash out). A few reasons for cashing out include: home improvement, an education fund, and consolidating debt. Another way to convert equity in your home to cash is a “home equity” loan. A “home equity” loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan.
Why Should I Refinance My Mortgage?
Lower Monthly Payments
Mortgage interest rates fluctuate, and could drop below the rate on your current loan. When that happens, you may want to consider refinancing! If you are able to close with little, or no, closing costs, the benefits from a refinance are immediate.
Pay Off Your Home Faster
Shorter loan terms are associated with lower interest rates, so, by shortening your mortgage term, you’ll save thousands of dollars in interest. A lower interest rate and shorter mortgage term will be a significant money saver!
Take Out Cash
Refinancing an existing mortgage gives you the ability to apply for a new loan that is greater than the amount that is owed. The extra money in your pocket means you can add-on to the house, install that new swimming pool, or pay off some lingering debt.
By taking advantage of the right mortgage refinance opportunity, you will lower your monthly payment, and save yourself a significant amount of money over the life of your loan. At Mid America Mortgage Southwest, we always put the client first. We offer the most competitive rates in the nation, and pledge to make your mortgage refinancing a quick and hassle-free experience.
When Should I Refinance My Mortgage?
Choosing the right time to refinance your mortgage will save you money in the long run! Lower monthly payments are an attractive reason. By lowering your monthy payment, you are freeing up cash to pay for activities for the kids, vacations, and home repairs and additions! Refinancing your mortgage can be a money-saving move, but not in every situation. Contact Mid America Mortgage today to go over your options!
If your credit score has recently gone significantly higher, you can refinance to take advantage of a lower interest rate.
If you are looking to shorten the life of the loan, refinancing is a great way to do so. Pay off that mortgage and enjoy the home you’ve purchased!
- Reduce Your Interest Rate
- Cash Out Equity for Home Improvements
- Consolidate Debt
- Lower Monthly Payments
- Shorten the Loan