Refinancing Your Mortgage

The Top Reasons for Refinancing Your Home Mortgage Loan
1. Lower Monthly Mortgage Payment: By refinancing into a new, lower-rate home mortgage loan, it could be a fixed rate loan, an adjustable rate mortgage, or a fixed-ARM combination loan.

2. Consolidate Loans: You recently bought a home recently with a 1st and 2nd mortgage and want to refinance your loan in order to combine both loans into one new loan at your home's current value.

3. Fixed Monthly Payments: You currently have an adjustable rate mortgage but want fixed payments in the future by refinancing your loan into a new fixed rate loan.

4. Home Equity Loan: You want to refinance your loan to draw cash from your home's equity for debt consolidation, home improvements, investments or other purposes.

5. Pay Off Your Mortgage Sooner: You want to build up your equity in your home quicker and pay off your loan sooner by refinancing your mortgage loan to with an accelerated payment schedule.

Mortgage Refinancing Myths

Here are the two most common myths regarding mortgage refinancing that too often keep homeowners from taking advantage of the benefits of refinancing their home loans:

1. I need to own my home for at least twelve months before I can refinance.

On the contrary! We can refinance your home mortgage loan at any time using either your home's original purchase price at its value or a new appraised value in many circumstances. This will still permit you to change your loan program and allow for cash out if you require it. Refinancing your current loan could also eliminate your PMI (Private Mortgage Insurance) requirement, pay off a 2nd mortgage or to withdraw cash even if you've only been in your home for a few months.

2. I should only refinance my home mortgage loan if I can save at least one percent or more on my interest rate.

On the contrary! If you have a second mortgage, are paying private mortgage insurance, or need to withdraw cash for whatever reason, the interest rate may not be the only determining factor in deciding whether to refinance your mortgage loan.