There are significant benefits to mortgage refinancing, and we specialize in making sure these benefits are maximized for each and every one of our clients. Whether a homeowner is looking to save on monthly payments, stabilize an adjustable rate mortgage, make changes to the term of the loan, eliminate PMI insurance, or simply take cash out for any expenses, we will work diligently to meet and exceed any goals and expectations to find the best mortgage refinancing program for the homeowner. Below are some of the more popular benefits and solutions associated with mortgage refinancing options. Please call us any time for answers to questions and help with determining what the best route is depending on the given situation.
Lower Monthly Payments
Mortgage refinancing offers many options to lower monthly payments. Whether the goal is to lower the interest rate or extend the term of the loan, our mortgage professionals will provide assistance with the refinancing process for faster closings and immediate savings!
Switching an ARM to a Fixed-Rate Loan
Although ARMs (or Adjustable Rate Mortgages) are alluring for many home buyers due to their initial low interest rates, after a period of time these types of loans readjust and the borrower is at the mercy of the fluctuations in the market, which could equal drastic increases in monthly payments over time. Switching to a fixed-rate mortgage means less-risk for the borrower, and an overall more consistent and safer investment.
Improve ARM Conditions
Improve the conditions of an ARM loan with mortgage refinancing. Refinancing provides a homeowner the option to renegotiate the specific conditions of their current adjustable rate mortgage. Payment caps are an option that is available to a homeowner who is looking to lower the risk that is accompanied with an adjustable rate mortgage. Payment caps will reduce the amount of increase allowed with the fluctuation of interest rates. This is one of the many options that are available to a homeowner that is interested in the initial benefits of an adjustable rate mortgage, but is also looking for a solution that will provide protection from sudden leaps in interest.
Shorten the Length and Term of Loan
With a mortgage refinance, the homeowner has the ability renegotiate the term, or even length of the loan from a 30 year mortgage to a 15 or 10 year mortgage. By doing this, the homeowner is able to save money on interest payments and even get on a faster path to owning their home outright.
Use cash-out refinancing to get extra cash. Homeowners that have been living in their home for a while and paying their mortgage on time have built up equity that they can use to get money for bills and other expenses, this is called a “cash-out” refinance. By borrowing a larger principal secured against the equity in the home, they can obtain cash that can be used to pay for any expenses. This cash can also be used to pay off debt, credit cards, school tuition, home improvements and other large expenditures.
Home equity can be used to replace high-interest credit card debt with a refinanced mortgage. The new, consolidated loan will have a much lower interest rate than the previous loan and credit cards combined, and could also have interest that is tax-deductible.
Save on Taxes
Save on taxes and consolidate debt with mortgage refinancingWith the economy being what it is today, everyone is looking for a way to save extra cash. Mortgage refinancing can consolidate high interest credit card debt and replace non tax-deductible credit card interest with tax-deductible home acquisition debt. This is a great way to kill two birds with one stone: tax deduction and debt consolidation! Interest on a cash-out refinance is tax deductible up to the first $100,000 of home equity debt.
Private Mortgage Insurance (PMI)
Any homeowner that received their initial loan with less than a 20% down payment more than likely was requested by the bank issuing the loan to purchase a PMI policy to protect them in the case of a default. With refinancing, a homeowner has the option to use the equity in their home to renegotiate and eliminate the PMI requirements set by the bank.
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