What is Mortgage Refinance?
Refinancing means you’re taking out a loan to pay off your existing mortgage – essentially replacing your mortgage with a newer one.
With Mortgage Refinance you can,
-
Shorten the term to pay it off sooner (for example, convert a 30-year loan to a 15-year).
Take advantage of lower interest rates to save possibly thousands over the life of the loan. - Change from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa.
- Access the equity in your home as cash that you can use for renovating your home or anything else.
- Get rid of PMI after you have accumulated 20 percent equity in your home.
Your Refinance Options
Rate & Term Refinance
A rate and term refinance is a type of refinancing that allows you to change the terms of your current loan and replace them with terms that are more favorable for you.
You get a new loan, pay off your old mortgage and then make payments toward your new loan when you refinance.
This is a great option for homeowners who are not happy with the interest rate on their current mortgage.
Cash Out Refinance
With this refinance, you can take out equity in your home as cash, typically up to 80% of your equity. You can use this cash for any purpose, including:
- Funding home improvement projects,
- Consolidating debt with the lower home interest rate,
- Paying for your higher education,
- Placing a down payment on a second home/ investment property.
