- Why Refinance your Mortgage?
Want to refinance an existing high
interest mortgage with the lowest mortgage rates available?
Interested in refinancing with cash out in order
to make home improvements? Need to refinance to
consolidate existing loans? We can help!
When you refinance, you pay off your
existing mortgage with a new one. Most Lenders require
that you have at least ten percent equity in your home
prior to refinancing an existing mortgage. Usually,
if you are planning to maintain ownership of your property
it may make sense to refinance.
Reasons to refinance your
1. Interest rates may be lower now
than when you originally got your mortgage. If interest
rates are 1 percentage point below your current interest
rate you should look into refinancing.
2. Maybe when you originally got your
mortgage you took an adjustable rate mortgage, and now
with mortgage interest rates lower it's time to switch
it to a fixed rate mortgage. Fixed rate mortgages can
reduce your monthly payments if the interest rates have
3. Perhaps you want to make some home
improvements and need cash out to finance the changes.
4. Maybe you want to change the term
of your current 30 year mortgage to a 15 year mortgage
at today's low mortgage interest rates.
What is a cash out mortgage
A cash out mortgage refinance is when
you get a new mortgage for an amount higher than the
current debt owed on your present mortgage. With a cash
out refinancing you will receive a check after closing
for the amount you have financed above the amount required
to payoff your present mortgage.
Whether to refinance or not depends
on a few factors. Today, the closing costs to refinance
your mortgage will be about the same as those of your
original mortgage. You need
to have an idea how long you plan to stay in your home.
If you don't plan to own your property long enough to
recover the new closing costs then it won't make good
financial sense to refinance.
you refinance your current mortgage and lower your interest
rate by 1% and the refinancing closing costs are about
1% of the mortgage amount you will recover your closing
costs and be ahead financially in about 18 months!