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. When you close on your mortgage loan, you’re not stuck with the same one forever! Many homeowners refinance their mortgage at some point during the life of the loan (even more than once), for a number of different reasons that put them in a better financial position.
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.
Reduce your interest rate and monthly payments*
Lower your term: Sometimes keeping the same payment but shortening your term can save you THOUSANDS in interest over the term of the loan
Eliminate or reduce your monthly PMI
Accelerate your equity and pay off your loan faster
Increase your cash flow with a cash out equity for renovations/home improvements or buying an investment property
Roll your 1st and 2nd lien into one low fixed rate loan
Trade in that adjustable rate mortgage for a more stable payment
Transition into a Reverse Mortgage loan
*By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
To Refinance You'll Need:
Property Appraisal (if property inspection waiver is not obtained or if not a Streamline Refinance)
Income Verification (if not a Streamline Refinance)