If you are looking for a lower rate to ease cash flow, a shorter term to get your mortgage paid off sooner, we can help you make the right decision. You may find it wise to consider consolidating debt and paying off high interest credit cards. And if large repairs are on the horizon, MortgageRight will help you weigh the options with excellent client service.
Getting a new mortgage to replace the original is called refinancing. Mortgage refinancing is offered to allow a borrower an opportunity to obtain a different interest term and/or rate. The first loan is paid off, allowing the second loan to be created instead of simply making a new mortgage and throwing out the original one.
For borrowers with a perfect credit history, refinancing can be a great way to convert a variable loan rate to a fixed loan rate. Borrowers may be able to obtain a lower interest rate or shorten the loan term. There also may be the option to cash-out for debt consolidation, home remodeling or college expenses.
Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the appraised value of the home. Getting your first home mortgage was probably difficult. As you work hard and your good credit history grows, the opportunity may arise to procure a loan at a lower rate. Many people refinance their mortgage loan for this reason.
To help make housing more affordable for home buyers and homeowners, the FHA reduced annual FHA mortgage insurance premiums (MIP) for new mortgage loans. Refinancing into a lower monthly FHA MIP may help homeowners reduce an existing overall mortgage payment, reduce an existing mortgage interest rate, and build home equity faster.
If you are evaluating the pros and cons of a conventional refinance, reach out to MortgageRight to learn about your best options. Refinancing can potentially lower your monthly mortgage payment, pay off your mortgage faster or get cash out for that project you’ve been planning.
The VA Home Loan program provides qualified homeowners with a simple way to take advantage of lower rates and decrease their monthly mortgage payment. Beyond that, military homeowners can get cash-out on a VA refinance and use the proceeds for a variety of needs, from paying off debt or making home improvements and much more.
A conventional refinance can be a excellent way for FHA homeowners to cancel their FHA mortgage insurance premiums. Rather than refinance with the FHA, homeowners can opt to refinance with a conventional loan instead. This strategy is increasingly popular as home values continue to recover nationwide. The rules are basically the same for refinance as they are for purchase, but the results can prove to be a great way to save money on both the short and long run.
Disclosure: Even though a lower interest rate can have a profound effect on monthly payments and potentially save you thousands of dollars per year, the results of such refinancing may result in higher total finance charges over the life of the loan.