What Does It Mean To Refinance A Loan?
To “Refinance” means to revise an existing mortgage. The current mortgage is paid off and is replaced by a new mortgage. People typically refinance to lower their interest rate, pay off debt, cash-out equity, or change loan type/terms. Today’s mortgage rates are at or near historic lows; and over 50% of homeowners with mortgages pay interest rates above today’s current rates. Many could save thousands by refinancing. Are you one of them?
How much can you save by Refinancing? If you have a 30-year mortgage at 6.2% taken out 5 years ago and have a current loan balance of $188,000. Refinancing into a 3.5% interest rate into a 25 year mortgage would save you $300 per month and over $90,000 over the life of the loan. The savings opportunity in todays low interest rate environment is substantial, but refinancing your home can have certain costs associated with it; therefore you will need to evaluate whether the benefits outweighs the costs to refinance your existing home mortgage. Below you will find some basic knowledge and things to consider when trying to determine if a refinance makes sense for you.
Refinance Links
How Much Equity Do I Need To Refinance?
What Are The Costs To Refinance?
Rate/Term - No Cash Out Refinance
Overview Of The Refinance Process
Important Tips For A Successful Refinance Process
Refinance Documentation Checklist
VA IRRRL & VA Cash Out Refiances
Contact A Refinance Mortgage Expert
Leverage your investment and use the equity your home has gained over the years
Good for
Renovating your home
Paying down high-interest debt
As an established homeowner, you can improve your financial security by refinancing to a lower payment
Good for
Lowering your monthly outlay
Planning for retirement
Learn how the home buying process works with our mortgage Refinance into a shorter term so you can pay off your mortgage soonere tools and resources page
Good for
Reducing the amount of interest you’ll pay
Becoming mortgage-free faster
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