If you are looking for a lower rate to ease cash flow or a shorter term to get your mortgage paid off sooner, we can help you make the RIGHT decision.
Getting a new mortgage to replace the original is called refinancing. This process allows the borrower an opportunity to obtain a different interest term and/or rate. The first loan is paid off, then the newly refinanced loan goes into effect.
It is common for people to refinance when they have equity in their home, which is the difference between the amount owed on their mortgage and the appraised value of the home. In that situation, the borrower has an option to “cash-out” (hence the term cash-out refinance) the value of their home equity allowing them to remodel their home, consolidate debt, pay for college, or other expenses.
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.