When Does it Make Sense to Refinance?

Published on November 13th, 2017

Refinancing your home is the act of acquiring a new loan with better features to finance your mortgage.  Refinancing could possibly lower your monthly payments and allow you to obtain cash from your equity while paying off your home quicker. Although refinancing is beneficial to most, be sure to speak with one of our experienced mortgage advisors to weigh your options.

When should I consider refinancing?

First, ask yourself what you are hoping to achieve with your mortgage. If you’re looking to lower your monthly payments, shorten the life of your loan, reduce your overall interest expense, get cash-out or change your loan type, consider refinancing. You should also consider how long you’ve owned the property, and how long you are planning to stay in your home. If you’re thinking about moving, refinancing your current mortgage may not be the suitable option for you.

What are the costs associated with refinancing?

There are multiple costs to be paid in order to refinance. These costs can include: application fee, appraisal fee, credit report fee, attorney or legal fees, loan origination fee, taxes, title search, title insurance and closing costs.

How do I get started?

Find a lender that is right for you and prepare. Once the process has begun, work with your loan officer to get the required documents so they can work to find the refinance loan that’s right for you. Once your application is complete, the loan can begin processing!

Getting your free rate quote today to determine your home’s equity can save you thousands by lowering your mortgage rate. If you can cut one percentage point or more, refinancing makes sense. With property values increasing, equity is rising.

Contact one of our licensed loan officers today at 1-844-77-vLoan to tap into your home’s equity and take advantage of lower rates.

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