If you clearly understand reasons to obtain a Refinance Loan, it will help you choose a loan that will meet all your financial goals. Here are some reasons why owners obtain a Refinance Loan: It can lower your monthly payment, give you access to cash, pay off other debts, and/or convert an adjustable rate mortgage to fixed rate mortgage.
Reducing your rate by just half to three quarters of a percent will lower your payments on your Refinance Loan. Otherwise you will be paying too much for every loan payment. One way your payment will be lower is if you simply do your Refinance Loan at a low interest rate. You can try to change terms to lower your payments. We have Refinance Loans with terms as high as 50 years, so finding the right program for you will be no problem.
A Refinance Loan allows you to access in a way a savings account that you could use. You could finance a home improvement that will increase the value of your home, for example remodeling your kitchen, adding to a room, or building a whole new room. Perhaps you would want to pay for schooling or pay off high interest credit card and automobile debt.
A Refinance Loan can also pay off other debts. The difference between credit card debt and a mortgage could mean thousands of dollars. Credit card debt is compounded, and home mortgage loan rates are simple, and usually tax deductible. Home Equity from a Refinance Loan can be used for other home purchases and can save you money by paying a lower interest than your credit cards.
A Refinance Loan can convert an adjustable rate mortgage to a fixed rate mortgage. If you have an adjustable rate mortgage and plan to live in your home longer than a couple of years it would be a good move to convert to a fixed rate through Refinance Loan. However, if you plan on living in your home for only a couple of years, paying a higher interest rate for a long term fixed rate mortgage will cost you money. Try a Refinance Loan with an Adjustable Rate and pay a much lower amount each month. Or a Refinance Loan with a Fixed Rate for a long term saving.
Whatever your financial needs are, we can find a home loan for you.