When you refinance, you are paying off your existing mortgage and replacing it with a new mortgage loan. Many homeowners consider refinancing the minute the interest rates suddenly fall. A standard rule of thumb for refinancing is if the interest rate is at least ½% to 5/8% lower than your current interest rate.
Here are some options for refinancing:
- Lower the interest rate or extend the repayment period
The result will be lower monthly payments. This option should
be chosen if you plan on staying in your home for more than 5
years.
- Switch from an Adjustable Rate loan to a Fixed Rate loan
Convert your Adjustable Rate Mortgage into a fixed rate mortgage
and give yourself a stable mortgage payment at a low interest
rate.
- Draw on the equity in your home by doing a "cash-out" refinance
Use your "cash-out" to consolidate debt, or get rid
of some high interest rate debt.
- Shorten the term of your loan
It's possible you could save thousands of dollars by shortening
the term of your mortgage while maintaining about the same mortgage
payment amount.
- Take advantage of a lower interest rate for an Adjustable Rate
loan
Watch the ARM programs for new rates and terms, it may be beneficial
to refinance to a different ARM program for a lower rate.
Check our selection of Loan Products
today to help you choose a loan program that answers your individual
needs. Start the process now by contacting one of our Loan
Originators or by calling or visiting any our Branch
Offices.
Contact Us for Assistance. Current Loan Rates - click on Rate Watch
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