When to Refinance a Mortgage
A mortgage refinance helps you obtain a new home loan that replaces the existing one. There are two types of refinances: cash-out and rate & term. One may refinance a loan to lower the interest rate on the existing mortgage or take cash-out of the equity of the property. Your mortgage advisor at GuardHill will help you get the most favorable home financing terms with the most competitive interest rates.
Why Refinance a Loan?
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 interest rate, amortizing years and loan amount may change with a mortgage refinance. A mortgage refinance 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!