Refinance

Refinancing your loan allows you to take advantage of improvements in your credit or drops in market interest rates.  Also, refinancing is consolidating other high interest debts into your new home loan to save on interest expenses. Many homeowners with 15-year loans decide to refinance to a longer loan term of 30 to lower their monthly payments.

When you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. With a new loan, you again pay most of the same costs you paid to get your original mortgage. These can include settlement costs, discount points, and other fees. The total expense for refinancing a mortgage depends on the interest rate, number of points, and other costs required to obtain a loan.

Traditionally, the decision on whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing.

Refinancing Benefits
Refinancing a mortgage is simply taking out a new mortgage. When interest rates drop lower than your current mortgage rate, you may be able to:

• Secure a lower rate than your current mortgage
• Build up equity more quickly by converting to a loan with a shorter term
• Change from an Adjustable Rate Mortgage (ARM) to a Fixed Rate Loan, which offers a predictable payment for the life of the loan
• Convert to an ARM with a lower interest rate and features such as a better rate and payment caps
• Consolidate higher-interest debt, like credit card or department store balances, with your existing home mortgage into a new lower-rate mortgage

To start your refinance mortgage application please click here.