Thinking about Refinancing?
We Can Help!
Thinking about Refinancing? We can help.
Refinance your way to a better mortgage.
Take Cash Out
Paying down your mortgage builds equity you can use to take cash out – great for renovating your home or paying down high-interest debt.
Lower Your Payment
Getting a new mortgage with a lower monthly payment can help with goals like saving for college or retirement.
Shorten Your Loan Term
Become mortgage-free faster and reduce the interest you’d pay. We offer custom terms starting at 8 years.
Benefits of Refinancing
Lower Interest Rates: Through refinancing, homeowners have the opportunity to secure a lower interest rate.
Shorten or Lengthen Loan Term: Refinancing empowers homeowners to tailor their loan terms to their financial goals.
Access Home Equity: With the option of a cash-out refinance, homeowners gain access to their home’s equity.
Switching Loan Types: Refinancing provides the avenue for seamlessly transitioning between loan types.
Consolidating Debt: One of the advantages of refinancing is the potential to consolidate high-interest debts, like credit cards or personal loans, into a single, more manageable mortgage payment.
Get Rid of Mortgage Insurance: Upon reaching the equity threshold of 20%, refinancing offers a way to eliminate Private Mortgage Insurance (PMI).
When Does Refinancing Make Sense?
Refinancing is a smart move under certain circumstances, such as:
If current interest rates are significantly lower than the rate on your mortgage.
If your credit score has improved since the original loan, and you may qualify for better rates.
When you plan to stay in your home for an extended period, maximizing the benefits of a new loan.
The Refinancing Process
- Assess Your Goals: Start by clarifying your refinancing goals. This involves using online calculators or seeking guidance from a mortgage expert to estimate potential savings based on your objectives.
- Check Your Credit: Obtain a copy of your credit report. If needed, take steps to enhance your credit score, which can result in eligibility for more favorable interest rates.
- Gather Documentation: Prepare essential documents, including pay stubs, tax returns, and financial statements.
Shop for Lenders: Compare offers from multiple lenders to find the most competitive rates and terms. - Submit Application: Once you’ve chosen a lender, complete the refinancing application and provide the necessary documentation.
Appraisal and Underwriting: Expect the lender to conduct a comprehensive appraisal of your property and undertake underwriting procedures to evaluate your eligibility based on the provided information. - Closing Process: If approved, review and sign the closing documents to finalize the refinancing.
Risks of Refinancing
Even through refinancing has many benefits, it’s still important to consider some potential downsides:
Closing Costs: When refinancing, you will have closing costs that can be similar to those of the original mortgage. You will need to evaluate if the potential savings of the refinance outweigh the new closing costs.
Extended Loan Term: If you are extending your loan term, you may end up paying more over the life of the loan.
Before you start the refinancing process, carefully consider the benefits, costs and risks involved. Seek out a mortgage professional to get expert advice and help you make a confident choice.
Refinancing is a valuable tool for homeowners, if used under the right conditions. It allows you to take advantage of better interest rates, increase your financial flexibility, and reach long-term goals. Contact us today to get started.