What is a Mortgage Refinance?
Refinancing your current home mortgage provides you with a new mortgage loan that replaces the existing one. There are two types of refinances; cash-out and rate & term. Consult with your mortgage advisor at GuardHill to assist you in finding the best solution for your financial goals.
You can refinance your current mortgage to potentially lower your rate, lower monthly payments, consolidate debt, or change the loan terms. Some people refinance for new loan terms to match changing financial needs.
The terms a refinance can change may include the mortgage rate, amortizing years, and loan amount. Refinances could also be used to reduce your monthly mortgage payment, take cash out and cancel mortgage insurance premiums. By refinancing your existing loan, the total finance charges may be higher over the life of the loan.
There are many reasons to pay off your current mortgage with a new mortgage with a refinance. Common reasons people refinance include:
- Lower monthly mortgage payments
- Update terms of the loan
- Take equity (or cash) out of the value of your home
- Consolidate debt
- Cancel mortgage insurance payments
- Pay off the mortgage faster
You can achieve any of these financial outcomes by consulting with your mortgage professional at GuardHill to find the best solution for your scenario. Get started today!