Home Loan Refinance
Refinancing your mortgage is the process of taking out a new loan to pay off the current loan. Mortgage refinancing is done for a variety of reasons; however, most often it is done to lower the interest rate of the loan, if rates have gone down since the original mortgage went into effect.
It is important to understand that when refinancing a mortgage, you will be applying for a brand new loan. Even if you are refinancing with your current lender, you will still need to go through the entire qualifications process. Furthermore, there are costs associated with refinancing which ranges in the thousands. Even though the cost of refinancing gets rolled into the new loan, it is important to realize that there is a cost nonetheless. Aside from the initial cost of refinancing, there are also long-term costs that can come into play depending on your situation. For example, if you have been paying your mortgage for seven years, and refinance into another 30 year loan, the amount of interest paid on the property will be higher because you will have paid a total of 37 years of interest instead of 30.
Get in touch with us to find out what the best refinancing option would be based on your individual financial position, and needs.