When is Refinancing is Right for you?
If you are not in the market to purchase a new home, refinancing may be a smart move for you and your finances. Obtaining a new mortgage to replace your existing mortgage with a lower interest rate is called refinancing. The first loan is paid off and a new mortgage is created with a new term, new interest rate and monthly payment. Here are some of the more common benefits associated with a mortgage refinance:
– Lowering your monthly mortgage payment
– Shortening your loan term; i.e. paying your mortgage off sooner
– Taking cash for a variety of reasons (home improvement, consolidate debt, college tuition, etc.)
– Going from an ARM to a fixed rate
– Removing an ex-spouse from a mortgage and title
When considering a refinance, you should check the interest rate on your existing loan. Second, you can call one of United Home Loan’s officers to find out the best rate they can get for you. They can also provide you with information on a shorter-term loan which generally have even lower interest rates and come with the added bonus of paying off your mortgage sooner. Additionally, they can provide you with an estimate of all other related fees such appraisal and closing costs. Refinancing may come with associated fees but this depends on your interest rate. We will be able to provide you with a rate quote where all closing costs are covered and an even lower rate where you pay a closing fee. In the long term, considering the overall savings associated with a lower interest rate, many people find that paying for closing costs to lock in an ever lower rate makes financial sense.
Refinancing is generally a smart move for people with very good credit, however if your credit score needs some work, our officers can work with you on ways to improve your credit score and determine whether refinancing is a viable option for you.
You can call us at 708-531-8388 to speak to one of our loan officers contact us below for a custom quote.