How to Refinance your loan?
With the cost of everything on the rise, it may be time to evaluate your monthly mortgage payments. Refinancing is a great way to save, take cash out from your equity for future expenses, renovate your home to add more value, or just to change the payment structure of your loan. Talk with our experts to discuss your goals, priorities and provide you peace of mind.
How Does Refinancing Work?
When homeowners refinance their home, the first mortgage loan gets paid off, which allows for a new second loan to be created. If the homeowner is looking to refinance for cashing out on their home equity, it usually means that they have to qualify for a new loan that is higher than the current balance of the original mortgage loan. If a homeowner would like a no cash-out refinance option, they essentially are changing their interest rate and or shortening their repayment term.
Things to Consider
- In some cases, refinancing can include the same closing costs as your initial mortgage
- Refinancing is a lot easier and takes up less time than when you first got your home
- Before you refinance, speak to an expert loan officer to understand all your options and learn about current rates