Home Refinancing Guide

Home Refinance Guide


Are you considering Home Refinancing?

Could a refinance of your current mortgage or home be right for you? Most mortgagors look to reduce their monthly payments or take cash out of their home’s equity for paying off other debt 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.


Use or Refinance Calculator to see if refinancing makes sense for you.


Lower your monthly payment

When interest rates decline, it may make sense to consider refinancing your existing mortgage if your plan is to keep your property for the next several years. The monthly savings alone will make up for any additional cost related to the refinance loan.

We can help determine whether the refinance would be a sensible option for you.


Payoff your home faster by switching to a shorter-term loan

It could make sense to switch to a shorter-term loan if your budget can handle a higher monthly mortgage payment. Paying less interest over time can save you thousands of dollars and build equity faster. Most borrowers that currently have a 30-year mortgage term find it beneficial to refinance with a 15-year term to take advantage of current lower interest rates and paying a little more per month.


Take cash-out

When you have equity in your home, cash-out refinancing can allow you to turn that equity into available cash. Some reasons for Cash-Out Refinancing include:

  • Accessing cash for making a large purchase when funding for the purchase may not be immediately available, or other types of funding is more expensive than the rate you can get through refinancing.
  • Paying off other debts
  • Making home improvements
  • Purchasing another property
  • Education expenses


Change from an Adjustable-Rate (ARM) to a Fixed-Rate Mortgage

Adjustable-rate mortgages (ARMs) are great for minimizing your monthly mortgage payment in the early years of owning a home. But when interest rates start to rise, the monthly payments on an ARM could also. To avoid the increasing payments, you can switch to a fixed-rate mortgage. While the monthly payments on a fixed-rate mortgage may initially be higher than the payment on your ARM, you will have peace of mind knowing your payment will remain the same, even if interest rates continue to rise.


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 for 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.