Rate & Term Reduction
Consumers can save big when they replace a 30-year mortgage with a lower interest rate, or with a shorter term. The term is the duration of the loan, when you go from a 30-year loan to a 15-year loan the payment will be slightly higher but the loan will be paid off in half the time.
Cash out Refi
Typically mortgages carry the lowest interest rates. When homeowners are considering borrowing money for home repairs, paying off high-interest debt or other investments a cash-out refinance can be the best option. Now could be the right time to take advantage of the recent market appreciation.
Move to a fixed rate from an adjustable
Moving from a variable rate or home equity line of credit to a fixed rate can provide borrowers the certainty of knowing that their payment will remain the same for the duration of the loan.
Eliminate Mortgage Insurance
When some consumers buy a home with less than 20% down they will be required to buy Mortgage Insurance. Given the recent home appreciation, borrowers may now be eligible to remove this portion of their monthly payment. The savings can be substantial.
Remove a borrower from the loan
There are many reasons to remove a borrower from a loan but there is only one way to do it. The only way to remove a borrower form a mortgage is to refinance the loan.
Loan Consolidation
Are you tired of keeping track of a number of different loans? It may be easier and cheaper to pull them all into one loan. A refinance can allow you to pay less in interest as well.
