Want to lower your monthly house payment or change your adjustable rate mortgage? Whether you’re looking for better loan terms or simply want to cash out some of the equity in your home, refinancing can really make “cents”.

Q: Why Should I Consider Refinancing?
A: There are two primary reasons to refinance your home: to improve the rates and terms of your loan, which could bring down your payments, or to better utilize your home’s equity and pay off debt.

If you want to move from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage, from a higher to a lower interest rate, or if you want to shorten the length of your loan, you are looking for rate and term refinancing. This is where you replace an old loan with less favorable rates and terms with a new loan.

If you’re looking to pay off your credit cards or other large high-interest debts, you’re looking for cash-out refinancing. In addition to giving you enough money to pay off your current loan, cash-out refinancing leaves you with extra cash which can be spent for any purpose.

Q: When Doesn’t it Make “Cents” to Refinance My Home?
A: There are expenses associated with refinancing. It is important to know that if you do not intend to stay in your home for the amount of time it will take you to recoup those loan expenses, then refinancing, while saving you money on your payment each month, may not be the best choice for you.

Q: How Do I Get Started?
A: After deciding if you need rate and term or cash-out refinancing, you’ll want to review mortgage quotes from several lenders. Study the various mortgage options, current interest rates, and other terms. You’ll want to compare these offers to your present terms and interest rates by using an online mortgage calculator. This will help you to determine your monthly savings. Don’t forget to take into consideration the total cost of the loan so you know how long you will need to stay in your home before the refinancing makes dollars and cents!

Q: Anything else to keep in mind?
A: Many lenders now offer roll-in loans which “roll-in” the costs of obtaining the loan with the refinancing amount making the refinancing process even easier.

If you’re ready to take advantage of lower interest rates, pay off bills, and take control of your finances, it’s definitely time to consider refinancing your home!

Sincerely,
Lending Lowdown