Refinancing

With interest rates at historic lows, now is a good time to evaluate the option of refinancing

Refinancing can be a good idea if you fit into one or more of these categories:

  1. Have a high interest rate. Are you stuck in a loan with a high interest rate? Lowering your interest rate can lower your payment significantly.
  2. Need cash out. Do you need cash to pay bills or do home improvements?  Borrowers that owe much less than the home is worth can do a cash out refinance and use that cash to pay debts or make their home better.  Note that the type of loan (e.g., FHA, conventional, VA, etc.) you refinance into will dictate how much cash out you are eligible to get.
  3. Want a shorter term. Do you want to shorten the amount of time it will take to pay off yoru loan?  Often borrowers can get out of the typical 30-year-loan and into a 15- or 20-year loan with a minimal effect on their payment!
  4. Want to get out of mortgage insurance. If you have a home that has increased in value to the point where your loan balance is less than 80% of the current appraised value (but not necessarily 80% of the original purchase price) a refinance can help you eliminate mortgage insurance and therefore lower your payment!

A few refinancing facts:

  1. You can sometimes refinance even if you owe more than your home is worth. If you have an FHA or VA loan (or conventional loan dated prior to May 2009), you can refinance your loan to a better rate and term even if you own more than your home is worth!
  2. You can usually refinance without paying any closing costs. There are closing costs associated with every loan type but we can roll those costs into your loan or use the interest rate to cover those fees.  Contact us and we can tell you what costs would be associated with your particular loan and discuss ways to get your cash-to-close as low as possible or even give YOU cash at closing.
  3. Refinancing is a lot easier than you think! Most of the time refinancing is so much easier than you think!  We do need some basics from you the borrower, but most of the leg work is done on our end.  We strive to make the process as simple as possible!

Please consult one of our friendly loan officers today to help you determine which loan option is the best for your particular situation!  We’ll do our best to be “The Bright Spot in Mortgage Lending!”