Why Refinance?
At the most basic level, a home mortgage refinance is simply a new loan with new terms used to pay off an existing loan. Like any mortgage loan, various fees accompany the service of a home mortgage refinance whether the new loan is carried out by the existing lender or not. So then, if you already have a mortgage, why would you go through the hassle and pay a whole new set of fees to enter into a new loan?
You can get a lower interest rate that will reduce you monthly payment and often the overall cost of your loan. Similarly, if you have an adjustable rate mortgage (ARM) that is set to readjust in the future, now might be a good time to lock in what are - still historically - very low rates.
You can combine a first and second mortgage into one new refinance loan.
You can reduce or increase the term of you loan depending on your current financial situation. Also, if you are short on cash you can draw upon the equity in your home to take cash out.
Financial Impact and Considerations
This is a business decision that will impact you for decades to come hence you and your lender need to answer some critical questions surrounding your home mortgage refinance.
- How much lower will your monthly payments be?
- What is the sum of the fees associated with the new refinance loan?
- How many years remain on your current mortgage?
- How long do you plan to remain in the house?
- How much of your current monthly payment is interest vs. principle?
The best way to figure out answers to these questions is to speak with multiple loan professionals. Ask the same question to a few different people, this will allow you recognize who is giving legitimate answers and who has your best interests in mind. Begin your research today by comparing mortgage rates at Mortgageloan.com, we want you to do the necessary due diligence in order find the correct loan.
You are in Power
You should treat a possible home mortgage refinance as if you are making a sale. You own the product, your home, and lenders want to buy the right to lend money on your home. Sell the right to lend money on your home to the highest bidder, which means, the lender who can give you lowest interest rate and best loan program for you. The more lenders you compare the better deal you will find on your home mortgage refinance; take advantage our free mortgage quotes and get to researching who can offer you the best home mortgagehttp://www.mortgageloan.com/home-mortgage-refinance
