With mortgage refinancing, there are many options available for you, the homeowner, to lower your monthly payments. Whether you want to lower your interest rate or extend the term of your current mortgage, our mortgage refinancing professionals can help you get the refinance you need so you can start saving thousands with your new 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.
Refinancing allows you to renegotiate the specific conditions of your current adjustable rate mortgage you want to change. One available option for homeowners looking to lower the risk of adjustable rate mortgages are payment caps, which reduce the amount of increase allowed with the fluctuation of interest rates. If you still want the initial benefits of an adjustable rate mortgage while protecting you from sudden leaps in interest, mortgage refinancing can help.
With a mortgage refinance, you can renegotiate the term—or length—of your loan from a 30 year mortgage to a 15 or 10 year mortgage, which means money saved on interest payments and a faster path to owning your home outright.
If you've been living in your home for some time, chances are you can use the equity in your home to get a "cash-out" refinance. By borrowing a larger principal secured against the equity in your home, you can obtain cash that can be used to pay for any expenses. Use the extra money to pay off debt, credit cards, make home improvements, finance tuition and other large expenditures.
Use the equity in your home to replace high-interest credit card debt with a refinanced mortgage. The new, consolidated loan will most likely have a much lower interest rate than the previous loan, and could also have interest that is tax-deductible.
With the economy being what it is today, everyone is looking for a way to save extra cash. With a mortgage refinance, you 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! Even the interest on cash-out type refinances is tax deductible up to the first $100,000 of home equity debt.
If you received your initial loan with less than a 20% down payment, your bank more than likely made you purchase PMI to protect them in the case of a default by you, the borrower. With refinancing, you can use the equity in your home to renegotiate and eliminate your PMI requirements.
