How do you know when it is the best time to refinance? Your home is your biggest investment, and your mortgage is your biggest debt. Refinancing makes sense any time that you can improve your overall financial situation by making your mortgage fit better with your present situation and long term goals.
Some of the reasons to refinance are:
Here are some things to consider if refinancing your mortgage would help you:
What is your current interest rate?
If current rates are lower, refinancing could save you up to hundreds of dollars each month.
Are you in an adjustable mortgage?
If your mortgage is adjustable, and you are still planning on being in the home for a while, refinancing into a fixed rate or a new longer term adjustable loan could help you maintain peace of mind, and lower payments for the long ter. It is crucial to make your financing work for your current situation, not just what made sense when you first bought your home.
Do you have high credit card debts?
If you have equity in your home, consolidating debt into your home loan can be a way to pay off high interest credit cards into a low rate, tax deductable mortgage. It is often possible to save hundreds of dollars each month when consolidating your debts into a new mortgage, putting you in a much better financial situation going forward.
Do you want to pay your loan off quicker?
If you can afford to pay a little more each month, you can save thousands of dollars and pay your loan off much quicker. Rates are generally better with shorter term loans. If cash flow is an issue, this is probably not the way to go, but for many homeowners it is a way to gain equity and build wealth.
Refinances are available for loans of all types and sizes. We offer –
Conventional mortgage refinances – Both rate and term and Cash/Out up to the conforming loan limits.
FHA mortgage refinances – FHA offers several types of refinances –
FHA rate and term if you just want to lower your rate or shorten your mortgage period you can refinance up to 96.5% of your mortgage value.
FHA cash out to consolidate debts or to take out cash for other uses up to 85% of your home’s value.
FHA Streamline refinance with lower documentation requirements.
FHA 203k refinance which allows you to remodel, improve or repair your home and add the cost of the repairs into the new mortgage amount.
VA mortgage refinances – VA refinances are available for qualified veterans or active duty military and their spouses. VA mortgage refinances include the IRRL VA streamline refinance which allows refinancing with less documentation, as well as cash/out and rate term refinances.
Jumbo refinances – No matter how large your loan is, there are programs available to refinance into lower rates.
Home Affordable Loan Programs – Refinancing in today’s market can be more of a challenge. Home values are lower and it may be harder for your home to appraise out to the value needed. These government mortgage programs are designed specifically for home owners who have lost equity in their homes, but would benefit from refinancing. Your loan needs to be serviced by either Fannie Mae or Freddie Mac in order for you to qualify.
Mortgage Refinance Articles
1) Why Refinancing
2) Refinancing and the payback period
3) The No-Cost refinance
4) Term Loans – Pay your loan down fast to build equity
5) Cash out and debt consolidation refinances
6) Credit where credit due – understanding your FICO Scores
7) Who does your Realtor work for? Understanding agency
8) Finding the right Realtor
9) Why do mortgage rates change?