Refinancing refers to the replacement of an existing home mortgage with a new home mortgage under different terms. 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, debt consolidation and financing your start-up business.
Today's mortgage is not a "one-size fits all". Each one of our customers comes to us with unique needs and we provide mortgage options accommodate those personal needs. We take a holistic approach to financing to ensure that the liability is managed as strictly as you manage your assets. You can expect to receive a the financial plan to accommodate your refinancing goals that blends with your financial plan.
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.
Just imagine what you could do with an extra $100, $300 or more each and every month. You might decide to apply the savings toward your balance and build equity faster. Or maybe you just might want to put the money in your savings account or portfolio and watch it GROW! The best thing is. you’re in control . You decide what is best for your family!
In order to refinance you will need a current appraisal, analysis and in many cases verification of your income and assets, as well as most of the same paperwork required when you originally financed your home. Adequate property insurance and new title insurance is necessary.