If you need to lower your payment, take cash-out, consolidate debt, or drop your loan term, we can help! We specialize in helping you restructure your home financing to meet your goals!
Reasons to Refinance
For most people, their home is their biggest financial asset and liability. This means that the structure of the underlying mortgage should be evaluated on a periodic basis to see if a refinance might be advantageous. Here are some of the most common reasons people refinance:
1. Lower Rate/Payment: We have been in a historically low-interest rate environment for many years. While rates always drift up and down, we recommend that you assess the rate environment on an annual basis. This is especially true for larger loan amounts because small fluctuations in interest rate can translate to thousands of dollars!
2. Lower Term: One of the best ways to save on interest and pay off your home faster is to refinance into a shorter loan term. For example, if you have 25 years left on your 30-year fixed mortgage, it might be financially beneficial to refinance into a lower rate mortgage for 15 or 20 years. Lowering the interest rate and cutting years off your mortgage could have a tremendous impact on your financial future.
3. Debt Consolidation: People often carry credit card balances with high rates instead of tapping the idle equity in their home to improve their situation. Put your equity to work, lower your overall debt payments, and increase your tax deductions by taking cash-out to pay off debt. We will help you work through the math to show you the positive impact on your finances!
4. Cash-out/Investment: Your home may need some upgrades or you may have an opportunity to invest in other ways. Unleash the captive equity that is not earning a return.
5. Eliminate Mortgage Insurance: Many people have mortgage insurance because their initial downpayment was less than 20%. If your property has appreciated and you have paid dow your loan balance, we can often secure a loan that doesn't have MI! Why pay to insure the mortgage investor if you have built equity? Let's look at your scenario to see if we can eliminate it entirely.
6. Eliminate Payment/Reverse Mortgage: One of the most powerful tools we have for seniors is a reverse mortgage/ or Home Equity Conversion Mortgage. If you have a lot of equity in your home, we may be able to eliminate your payment altogether with a reverse mortgage. This is a very powerful retirement tool for seniors who would like to age in place and manage their cashflow in a different way.