With a variety of lenders available through CMA, your refinance options are not limited to what your current lender is offering. Let us shop the market to get you the best deal possible.
Refinancing your home is one of the best things you can do to get a lower interest rate on your existing mortgage. All refinancing means is that you take out a secured second loan on your existing loan, and the second loan replaces the first loan. One of the most typical reasons people choose to refinance their homes is because they’re unhappy with the interest rate on their existing loan,
For example, say an individual has a fixed interest rate of 9% on their first home mortgage loan of $300,000, but the interest rates have dropped to a low 4%. They might refinance because it would save them hundreds of dollars amonth. Generally speaking, it is a good idea to refinance only if the market percentage is at least 2 or 3% below the current interest rate on your home.
People also refinance for other reasons besides a lower interest rate; perhaps they have large medical bills, student loans, credit card balances or other high-interest debt. Refinancing saves them hundreds of dollars a month that could go towards these loans.
Benefits of Home Refinancing
Here is a recap of the benefits that are available to you as a homeowner if you choose to refinance your home:
- Lower interest rates. This means the amount you pay each month for your mortgage is reduced, and you have more money free for other things.
- Variety of loan length options. While the most common mortgage loans come in 15, 30, and 40 year terms, you have other options as well. Talk to your lender and determine what term works best for you.
- Choice of adjustable rate mortgage or fixed rate mortgage. You can choose which option works best for your situation.
- More financial freedom. This means more money can go towards college tuition, medical bills, auto loans, or other types of debt. Or perhaps it means you can finally take the trip you’ve always wanted.
To learn more, give us a call.
