Mortgage Refinance Options
Simply put, a mortgage refinance is the replacement of an existing mortgage with another mortgage under different terms. Mortgage refinancing can lower your monthly payments, which can add up to significant savings*. Knowing your current refinance mortgage rates is important. We can keep you informed and help decide when a refinance may be best.
There are two main types of refinances:
1. Cash Out Refinance
A cash-out refinance is when you refinance your mortgage for more than what you currently owe and take the difference in cash. It’s called a “cash-out refi” for short. Some popular reasons people choose a cash out refi are:
- To pay for home improvements
- To pay for student loans
- To consolidate debt by using the cash to pay off higher interest debts such as credit card balances
- To free up money to be able to purchase a 2nd home or investment property
2. Rate/Term Refinance
Rate and term refinancing changes the terms of a mortgage without adding any new money to the loan. Rate and term refinancing does not change the amount of principal. It only changes the interest rate and/or the length of the loan. There are several good reasons to consider rate and term refinancing:
- Perhaps interest rates have significantly dropped since you originally got your mortgage. You can refinance and get a better rate, which will save you money on your monthly payments*.
- Perhaps you have a 15-year fixed-rate mortgage but need lower monthly payments. You can use rate and term refinancing to turn your loan into a 30-year fixed-rate mortgage.
- If you want to build equity more quickly and pay off your mortgage faster, you can change from a 30-year fixed loan to a 15-year fixed, but this will result in a higher monthly payment — although more of your monthly payment will go to principal.
- If you choose rate and term refinancing, you can save some money up front by rolling in your closing costs. Although you do not get cash back with rate and term refinancing, you can receive up to 1 percent of the loan amount in cash at closing
When to Refinance Your Mortgage?
We offer information on a variety of mortgage refinancing rates and options. When you are ready to take the next step, feel free to give us a call or send us an email. Amanda and team can advise you on which mortgage refinancing program meets your needs, and help you refinance with minimal hassle and work.
Working with Amanda and team
- We put YOU first.
- Fast and efficient, we close most of our loans in 30 days or less.
- We offer a variety of loans. Amanda and team can help you find the loan that is right for you!!!
* Refinancing your current mortgage loan could result in the total finance charge to be higher over the life of the loan.
Working withAmanda E. Garcia, First Home Mortgage
- YOU first. We are committed to getting every client the very best possible deal every single time
- Amanda E. Garcia, First Home Mortgage offers some of the most competitive rates in the Nation!
- Fast and efficient, we close most of our loans in 30 days or less
- We offer a variety of loans.Amanda E. Garcia, First Home Mortgage can help you find the loan that is right for you!!!