If you are looking for a lower rate to ease cash flow, a shorter term to get your mortgage paid off sooner, we can help you make the right decision. You may find it wise to consider consolidating debt and paying off high interest credit cards. And if large repairs are on the horizon, MortgageRight will help you weigh the options with excellent client service.
Getting a new mortgage to replace the original is called refinancing. Mortgage refinancing is offered to allow a borrower an opportunity to obtain a different interest term and/or rate. The first loan is paid off, allowing the second loan to be created instead of simply making a new mortgage and throwing out the original one.
For borrowers with a perfect credit history, refinancing can be a great way to convert a variable loan rate to a fixed loan rate. Borrowers may be able to obtain a lower interest rate or shorten the loan term. There also may be the option to cash-out for debt consolidation, home remodeling or college expenses.
Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the appraised value of the home. Getting your first home mortgage was probably difficult. As you work hard and your good credit history grows, the opportunity may arise to procure a loan at a lower rate. Many people refinance their mortgage loan for this reason.
Earlier this year, the Federal Housing Administration (FHA) announced it would be reducing the mortgage insurance premium rate charged on FHA-hacked loans for new homebuyers and anyone refinancing an FHA loan. However, borrowers may consider refinancing your current FHA loan to a conventional mortgage and that will remove your mortgage insurance payments. If you have enough equity in your home, you may reach a substantial goal of reducing your monthly payments with a refinance.
If you are evaluating the pros and cons of a conventional refinance, call MortgageRight to learn about your best options. There are opportunities available to convert an existing adjustable rate mortgage, a refinance to a shorter term (15-years) to pay your loan off sooner, cash out for a remodel, needed repairs or large purchase. Or, perhaps you just want to consolidate and pay off a few bills.
The VA Home Loan program provides qualified homeowners with a simple way to take advantage of lower rates and decrease their monthly mortgage payment. Beyond that, military homeowners can get cash back on a VA refinance and use the proceeds for a variety of needs, from paying off debt or making home improvements and much more. The current economic climate makes now a great time or many military homeowners to take advantage of the numerous benefits found in a VA refinance.
A conventional refinance can be a excellent way for FHA homeowners to cancel their FHA mortgage insurance premiums. Rather than refinance with the FHA, homeowners can opt to refinance with a conventional loan instead. This strategy is increasingly popular as home values continue to recover nationwide. The rules are basically the same for refinance as they are for purchase, but the results can prove to be a great way to save money on both the short and long run.
Disclosure: Even though a lower interest rate can have a profound effect on monthly payments and potentially save you thousands of dollars per year, the results of such refinancing may result in higher total finance charges over the life of the loan.