What is Refinancing?
Refinancing is the process of replacing an existing mortgage with a new loan.
There are a few reasons why homeowners refinance, typically it’s to reduce their monthly payments, lower interest rates,to shorten the term of their mortgage, change the loan to a fixed-rate mortgage or because they need access to cash to deal with a financial emergency or any other reason.
Benefits of Refinancing
These are some advantages of refinancing.
- Lowering your monthly payment: By refinancing you can get a lower monthly payment and put those savings towards your mortgage payment and pay it off sooner, or pay off any other debts you have, either way, you save money.
- Reducing length of loan: A 30 year fixed-rate mortgage may have been a good idea in your younger days but if you want to pay it sooner, reducing the loan term can be very attractive, in some cases you can cut the term in half with a slight change in your monthly payments, but you need to do the math and see what works best for you.
- Switch to fixed-rate loan: Having the peace of mind of knowing your monthly payment will never change is something many people need. Changing your adjustable-rate mortgage (ARM) to a fixed-rate loan is usually a good idea, since no one knows what will happen to interest rates in the future.
- Take out cash: A cash-out refinance may be another perk of owning real estate, in case you need some money for any urgent matters.
During this pandemic you can get home refinancing with an APR as low as 2% dropping your house payment hundreds of dollars. Let us show you how!