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Home refinance

Learn what home refinance is and how it can impact your mortgage interest rate.
Discover the main benefits you can obtain by refinancing your home mortgage.
Understand how and when to refinance. Learn the right way to do it.

What is home refinancing?

Refinancing is the means of obtaining a new mortgage. Most home buyers do this to take advantage of lower interest rates, pay off their loans faster, be able to fund a large purchase, change mortgage terms, and for many other reasons.

Refinancing is possible when the home buyer has equity in their home. This means they have already paid off some percentage of their mortgage.

An unstable economy and high-interest rates can make monthly mortgage payments tougher than expected. If you find yourself in this situation, it might be time to consider refinancing.

Are you considering home refinancing?

Is refinancing your current mortgage right for you? Most mortgagors are looking to reduce their monthly payments. Others will take cash out of their home's equity to pay off debts or for large purchases. Some refinance to change mortgage companies or lower the mortgage rate or term. Whatever your reason, we are here to evaluate your current situation and advise you on your best available options.

WHAT CAN A REFINANCE DO FOR YOU?

Decrease your interest with a shorter loan term

Some lenders give you the option to change the initial 30-year term to a 15-year term. With shorter loan terms, your overall interest rates would decrease and you would end up paying less before owning the home.

Lower your monthly mortgage payment

When you refinance your home, you get a new interest rate. If today's mortgage rate is lower than what you currently have, you may save money each month.

CONVERT FROM AN ADJUSTABLE-RATE TO A FIXED-RATE

Adjustable-rate loans can be tricky for some borrowers, so they opt for the more predictable fixed-rate mortgage. Changing your adjustable-rate mortgage to a fixed-rate will protect your loan from unexpected cost increases in the future. Each month you will know exactly what you owe.

DRAW CASH FROM YOUR CURRENT EQUITY

A cash-out refinance would allow you to get money from the equity of the home already owned. This cash is used for important expenses like debt payments or consolidation, tuition, medical expenses, and more. Besides, a refinance mortgage interest rate of around 4% is much better than the average credit card interest rate of nearly 20%!

Avoid a Balloon Payment

If your current mortgage has a final balloon payment (when the entire balance amount is due at the end of the current loan's term), you can avoid the large sum payment by considering refinancing to a new fixed-rate mortgage.

Stop paying Private Mortgage Insurance (PMI)

If you purchased a home with less than 20% down, you are most likely paying for private mortgage insurance that protects the lender from borrowers with a loan default risk. As the balance on your home decreases and the value of the home increases, you may be able to cancel the PMI by refinancing.
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WHAT SHOULD I DO TO REFINANCE MY MORTGAGE?

The first thing you should do when considering refinancing is to figure out exactly how you will repay the loan. If you are refinancing for home renovations to increase the value of your house, you may use the increased revenue upon selling to repay the loan.

However, if the credit is going to be used for something that would not give monetary returns—like buying a new car, funding an education, or paying down credit card debt—you would have to write on paper how you will repay the loan.

You can talk to your lender to analyze possible options for you. A mortgage broker can help you see even more options that may be available from other lenders. Even if there is no current refinancing deal that would benefit you at the moment, you would at least know what step you need to take next. There might be complicated paperwork from time to time, and an experienced attorney or mortgage broker can help you understand the process better.

When can I refinance my home?

Most banks and lenders will require borrowers to keep their original mortgage for a minimum of 12 months before they refinance. Each lender's terms are different. Therefore, it would be best for the borrower to check all restrictions and details with the lender.

In some situations, it is better to refinance with the original lender, although it is not required. This is so that you and the lender do not need a new title search, property appraisal, etc. Most original lenders will offer a competitive rate to borrowers looking to refinance their mortgage. So it is possible that a better rate can be obtained by staying with the original lender. An experienced and trusted mortgage broker can help you determine whether staying with your original lender is better than going with a different lender.

ARE YOU CONSIDERING REFINANCING YOUR HOME LOAN?

Do you need better mortgage rates?

Do you want to save more money?

LET OUR MORTGAGE BROKERS HELP YOU FIND THE BEST REFINANCING OPTIONS FOR YOU!

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