All the information you need to make an educated decision
With mortgage refinance, you acquire a secured loan at a low interest rate to pay off another, higher-interest secured loan for the same property. You pay off your first mortgage and replace it with a lower-interest mortgage loan. People who have high interest rate mortgages could potentially save thousands of dollars through mortgage refinance.
A few things to consider before refinancing your mortgage loan:
- Be sure that the fees associated with your refinance do not exceed the amount of money you would save by refinancing.
- You can use cash-out refinancing to withdraw equity from your house on a refinance just like on a home equity loan.
- Your reduced interest rate will lower monthly payments.
- You can shorten the length of your mortgage term. Therefore, a mortgage refinance can save you thousands of dollars in interest that you may use to pay off debts and other loans, invest, undertake home improvements, etc. Also, by shortening your term from 30 or 40 years down to only 10 or 15 years, you will build equity faster at a lower interest rate.
It is important to understand that if your mortgage is an adjustable rate mortgage (ARM), a mortgage refinance can allow you to escape your rising interest rates and secure a fixed rate mortgage in its place. In addition, if you have private mortgage insurance (PMI) and your current equity is more than 20% of your home's value, you will no longer need your insurance and can drop it.
A mortgage refinance may be your best solution for paying off debts, saving money, and lowering your monthly bills. Please follow the link below to begin your mortgage refinance quote through our secure online form.