Refinance Your Mortgage
What does refinancing your mortgage mean? it means paying off an existing loan and replacing it with a new one. It also means leverage, because your home is an investment and refinancing is a way to leverage that investment. In other words your bank pays off the original mortgage with the new one.
Reasons to Refinance a Mortgage
- Lower payments: You can pay less if you refinance with a loan on a lower interest rate or to extend the loan term 10 or more years but in this last option you will pay more interest in the long run.
- Cash out: When you have equity in your home, it is possible to cash out some part of it with your refinance, that means you can use that cash for emergencies, bills or anything else.
- Change rate type: This can save you a few bucks if you move from an adjustable rate to a fixed rate since you will be avoiding the changes in the market.
- Change loan term: You can also apply for a change of loan term, instead of extending it you can lower it so you can save money on interest.
How to Qualify for a Refinance?
To qualify for a refinancing is very similar to the new mortgage process, and the factors include your home’s current value, the equity, your employment history and your income, as well as payment and credit history and your score.
Of course the better your history and score thee better terms you’ll get for the loan. If you have a bad credit score we can help you with that as well!.