Refinancing is often used to lower your interest rate. If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan or to extract cash equity in your home (cash out). A few reasons for cashing out include: home improvement, an education fund, and consolidating debt.
Refinance Options
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Rate & term refinance
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Cash-out refinance
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Remove PMI/MIP
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Debt consolidation
Another way to convert equity in your home to cash is a "home equity" loan. A "home equity" loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan.
Benefits:
- Lower the Interest you pay Monthly
- Cash-Out from the Equity in your Home
- Consolidate Debt
- Lower your Monthly Payments
Refinance Evaluation – What We Typically Need
To evaluate a refinance, we usually start with just a few basic items:
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Your most recent mortgage statement for any first mortgage, second mortgage, or home equity line of credit
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Your most recent homeowners insurance statement
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A copy of your property tax bill (we can often obtain this ourselves since it is public record in most cases)
With this information, we can prepare a clear estimate for your review so you can decide if refinancing makes sense for you.