Refinance

What is a refinance? 

Simply put, a refinance is the replacement of the current mortgage with a new one, providing a change of terms and interest rates over the old one to obtain a tangible benefit. As I tell my clients, refinancing is buying your home once again!

Why should you consider a refinance? 

Unless you have been living in a cave on an isolated island, then you probably have heard about the ridiculous all-time low interest rates in today's market. If you purchased a home or refinanced before 2010, you may want to consider doing this again, as rates are much lower than what they used to.

Is refinancing only to obtain a lower interest? 

Not necessarily. Refinancing gives you the opportunity to not only lower your borrowing interest rate to save money on your payments but also to shorten the term to be paid on your mortgage. With today's rates this low, it would not be unusual if you went from a 30-year fixed rate to a 15-year rate without experiencing a "payment shock". To learn more about rate/term refinancing, click here.

Thinking of doing home improvements in your home or pay for high-cost credit cards? Consider a cash out refinance! 

A cash out refinance allows you to:

• Take the equity of your home to finance projects in your home. These refinances have become more populars as the rates are generally lower than those on Home Equity Lines and Home Equity Lines of Credit. Further, with today's rates being at all-time lows, many borrowers are taking advantage of their equity and still experience a lower payment on their monthly mortgage. 

• If your debt burden in credit cards, car or student loans have become too much to bear. With lower rates on a cash out refinance than on credit card and installment loans, you may be able to wipe all if not the majority of your debt at a lower cost, allowing you to utilize your money in other things. 

Are there any programs out there that help you refinance?

You bet! In fact, there are plenty of programs going on currently that allow you to take advantage of today's market rates. Below, are a list of the most popular ones:

• HARP 2.0. The program of choice for refinancing an underwater conventional loan. 

• FHA Streamline. HUD's version of the HARP. No appraisal necessary and minimal borrower qualifications. Must be a current FHA loan. 

• FHA 203K. Cash out refinance toward home improvements for FHA loans. 

• FHA Energy Efficiency Mortgage (EEM). Cash out refinance towards energy improvements.  

• VA Streamline (IRRL). The Veterans Affairs' version of streamline. Current loan must be VA. 

Want to learn more about how a refinance can help you? Visit the links below!

Rate/Term Refinance 
Underwater Refinance 
Debt Consolidation and Home Improvement

Have any questions about refinancing? Send me a message by clicking here!