Mortgage

5 Bad Reasons to Refinance Your Mortgage

Written by adminOctober 9, 2019

Mortgage rates have been at their lowest rates in recent years, it might be time to refinance your home.

If you would like to lower your mortgage costs or tap some of the equity you built up over the years, there are many good reasons to consider starting the refinance process.

It is not always the right move however, here are 5 reasons why refinancing your mortgage could be a terrible idea.

1. Incorrectly Focusing on the Immediate Savings

If the new home loan doesn’t really save you money, then refinancing to score that lower interest rate and monthly mortgage payment may not be the smartest choice.

If you are thinking about moving soon, a refinance could save you perhaps $100 a month. But if you have to pay closing costs of $2000, you will need to stay in the home for 20 months or more if you want to avoid losing those savings.

Another thing is if you’ve been paying into your mortgage for 10 years and then refinance into a new loan, you could get stuck with 10 extra years of interest charges.

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2. Seeking Relief from Credit Card Debt

If you are looking to wipe out your credit card balances, you will need to begin a cash-out refinance. What happens is you borrow more than you owe on your home and take out the extra in cash. This cash then goes to the card issuer.

You will be left with a larger mortgage and a larger monthly payment. You would also have to toe the line to make sure you don’t end up drowning in credit card debt, putting your house at risk.

3. You’re Eager to Renovate

A cash-out refinance can free up the equity you need to pay for the remodeling project of your dreams, like getting those granite counter tops you’ve always wanted for your kitchen or redoing the tiles in your bathroom.

Before you borrow the money for home improvement, make sure to avoid projects that do not add value to your home.

That would simply result in you taking on more debt. Ensure that you will make a good return on your investment before moving forward with the remodeling.

4. Playing the Stock Market

The best way to build long-term wealth is probably by investing in stocks, bonds and other assets. it is very risky however to invest with equity based on your home in a cash-out refinance.

It is hardly worth it to refinance your mortgage to earn modest savings on investments as safe as certificates of deposit. Riskier investments carry considerably higher risks, nobody wants to lose their money and be left with a higher mortgage.

If you refinance solely for the purpose of investing, it pays to be extra cautious. Consider automated investing services that will automatically adjust your portfolio to withstand market fluctuations.

5. You want a “No-cost” Refi

There’s no such thing as a free lunch when it comes to mortgages. Every mortgage comes with fees and other costs that will have to be paid. When a lender claims to offer a “no-cost” refinance, you would be wise to be skeptical.

These loans conceal the closing costs, and may be rolled into your loan amount or passed into you in the form of a higher interest rate.

These 5 reasons to hold off refinancing your mortgage can save you a lot of money. For any other financial advice, give us a call we are ready to assist you.

Call Now 844-332-2079

Written by adminSeptember 1, 2019

Mortgage

Searching for a new home requires patience, hard work, and sometimes, a little luck. When the economy is less than ideal, it forces people to make decisions that are not in their best interest. The good news is: right now is the perfect time to buy a house. There are three huge advantages homebuyers must keep in mind before jumping into the market.

The government is preparing for a housing boom. Both Fannie Mae and Freddie Mac have set aside less money than usual to protect themselves in case of a housing market implosion. This is a direct result of faith in the continuing upward trends that have been going on since the economic collapse. Here are the three main reasons why right now is the perfect time to buy a house.

Reason #1: Recovery of the Housing Market

The economy is improving rapidly. According to the National Association of Home Builders, fifty-nine metropolitan areas have completely recovered from the market crash that sent home numbers plummeting. “Our builder members tell us they are starting to see more optimism in the field. Mortgage rates are low, home prices are affordable and with the harsh winter behind us our latest surveys show builders are feeling more bullish about future sales,” said NAHB chairman Kevin Kelly.

Even with issues such as the ability to afford a home and low credit scores, there has been no better time for a potential homeowner to decide to get into the in-town Atlanta housing market.

Reason #2: Buying Is Cheaper Than Renting

With the housing market in full recovery, home prices are rising. Even with that statistic, Forbes released evidence that buying a home is much cheaper than renting. As of right now, a 30-year fixed rate is 38% cheaper according to Trulia. But there’s more to the story. Rising mortgage rates have been closing the gap over the past few years. Last year it was 44% cheaper to buy than to rent, which means the time is now to take advantage of the soft market.

Reason #3: Low Mortgage Rates

In 2014, the mortgage rates were hovering around 4.29%. As of this year, the rates have slowly declined and are now at 3.7% for a 30-year fixed rate. Frank Nothaft, chief economist and vice president of Freddie Mac, commented on the fall: “Mortgage rates continued moving down following the decline in 10-year Treasury yields after a dismal report on real GDP growth in the first quarter.”

If those weren’t enough reasons to entice a potential homeowner to get start his journey, here’s another: Fortune Magazine and Deutsche Bank released a study of “The Best Places in the U.S. to Buy a Home”, and Atlanta, Georgia took the top prize. That’s due to the astronomical cost of renting, which is more than 50% higher than an after-tax mortgage payment.

Atlanta also led the nation in the construction of new homes just before the major real estate crash. This means the supply was high and demand was low, causing home prices to take a tumble. This is also happening all over the country. The great economy has people looking to buy homes and get away from renting.

To keep up with demand, new houses are going up all over the place. Even in once-defunt rust belt cities, like Flint and Detroit. Old houses and blight are being knocked down to make room for new housing developments.

Written by adminAugust 9, 2019

Mortgage

Many prospective borrowers are likely to miss out.

Over the past week, mortgage rates plunged in response to concerns related to the ongoing trade war with China as well as overall economic health of the US.

The 30-year fixed-rate mortgage averaged 3.6% during the week, sliding 15% basis points down from last week according to a report collated by Freddie Mac. This is the lowest level mortgage rates have been since the 2016 presidential election, and the third-largest weekly decline this year. So far in 2019, rates have only posted an increase on eight occasions.

The 15-year fixed-rate also dropped 15 basis points to an average of 3.05%. The 5/1 adjustable-rate mortgage also declined 10 basis points to average at 3.36%.

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Despite the Federal Reserve cutting the Fed funds rate last week, that change has already been accounted for and incorporated into the mortgage rates. This week’s decline likely reflected the growing misgivings about the stock markets, including worries about the trade war that continues to rage between the US and China.

Freddie Mac in its report likened it to a “tug of war in the financial markets between weaker business sentiment and consumer sentiment.” As business sentiment is weakened by negative trade and manufacturing news, consumer sentiment is buffeted by a strong labor market and low mortgage rates that will continue to spur home sales all the way through the fall season.

In the end, the declining supply of homes for sale will offset any boost the low mortgage rates would otherwise provide to the housing market.

Prospective buyers will most likely miss out on these once-in-a-generation opportunity of low mortgage rates as home prices continue to reach record highs all across the country. This makes it hard for millenials to take advantage of these savings.

One positive sidenote is that this week’s drop in mortgage rates did result in a major surge in home-loan applications, although most of this was centered around mortgage refinances rather than new home loans.

If you need any financial advice, look no further than the Financial Helpers. We are just one phone call away and ready to assist you.

Call Now 844-332-2079

Written by adminJune 26, 2019

Mortgage

We’re currently sitting in a market that should be inspiring a real estate frenzy. Consumer sentiment about buying a home is higher than it’s been in five years. Home price appreciation is slowing down. Mortgage rates are slipping to a rate of 3.82%, a two-year low. While these are great numbers, it’s not leading to the kind of excitement it should be.

“We are in an extremely interest-rate-sensitive housing market,” said Daren Blomquist, vice president of market economics at Auction.com. “There’s a lot of hopefulness that cycle will repeat in 2019.” But, it’s just not happening. People aren’t buying home like they would in the past. Mortgage applications have dipped by 2% according to the Mortgage Bankers Association.

A lot of it is gun-shyness from the economy that is still recovering from the last recession. Buying a home is a riskier investment now. Due to rising mortgage rates last year, many Americans decided to get into a ‘rate-lock’ mortgage, so they already have low-interest mortgages and have no need to change it, which would be risky.

“Rates are clearly not the only factor people consider,” said Danielle Hale, chief economist at Realtor.com. While rates have gone down, homeowners are facing prices that continue to be expensive. They’re not seeing the motivation they need to decide to move up and purchase larger pieces of property.

Tax Fallout Hurting Home Buying

Another major issue keeping homebuyers from taking the leap is Trump’s changes to the tax code. The deduction for state and local taxes has been capped, preventing new buyers from getting a lower rate of property taxes. Now that those are moving upward, it’s preventing new buyers from jumping in.

“You’re facing a triple-whammy right now,” said Rick Sharga, a mortgage industry veteran and CEO of CJ Patrick Company, a real estate and financial services consulting firm. “A lot of the financial incentives that a move-up buyer would have had a couple years ago no longer exist.”

In the past year, the median U.S. home listing price jumped from $297,200 last year to $315,000 in 2019. “It’s really difficult to forecast where rates are going to go right now because there’s so much uncertainty,” Hale said. “Anytime there’s a lot of uncertainty that just sets the market up for disappointment.”

Despite the positive indicators, people are scared away from buying a new home. There’s nothing out there right now to push them into that decision. In fact, it hurts them in several ways. Hopefully this will change soon and the market will go back to being a buying frenzy.

Written by adminMay 25, 2019

Mortgage

After the 2008 economic collapse that resulted in the downfall of the housing market, the U.S. government has been working hard to try and provide relief for families that were stuck. HARP was designed to allow homeowners to refinance and get a better loan suited for the home’s updated value.

HAMP, the Home Affordable Modification Program, set out to help the homeowners who, for the most part, was enduring some type of hardship (due to the economy) and had trouble paying their mortgage each month. Those who qualified for help under HAMP were the most at risk for foreclosure of their homes, so the government stepped in to help.

The main purpose of HAMP was to make mortgage payments more affordable in the long-term until the economy could be straightened out. Well, that time has come. HAMP was discontinued at the end of the year 2016, but a new, more streamlined successor has risen from the ashes.

Flex Modification and How It Works

The new idea, created by Fannie Mae and Freddie Mac, is a newer, better version of HAMP. HAMP was sort of a troublesome program that required a ton of paperwork, thus congesting the system. What this new flex modification does is takes out most (or even all) of the paperwork and easing the restrictions for users, making it easier to get help.

In order to receive a flex modification to lower your monthly payments, you must send in a Borrower Response Package if you’re less than 90 days behind. If all goes well, you should see a 20% reduction on your monthly mortgage payments. If you’re more than 90 days delinquent, then you won’t even have to provide borrower documentation.

Are You Eligible?

To qualify for this loan modification, you must:

-Have a mortgage owned by Fannie Mae or Freddie Mac.

-Submit a BRP (Borrower Response Package).

-Be at least 60 days late on payments.

-Prove your hardship.

-Have been started 12 months before your modification evaluation date.

*Reminder: If you’re 90 days or later, then some of these qualifications disappear. A lot of homeowners wait the 90 days before applying to make the process easier.

Getting help if you’re struggling to keep up with your mortgage isn’t a bad thing at all. There will be times during the owning of your home where finances might not always be in order. Being able to lower your payments will be able to improve your overall quality of life. Consider whether a home loan modification will work for you.

Written by adminMay 22, 2019

Mortgage

If you own a piece of property and are unsure of what to do with it, hiring a property manager may be the best option to get the most from your investment. A decent manager will be able to add great value to your property and offer you a better return if you decide to sell it. Here are the 6 benefits of hiring a property manager can save you in the long run:

1) They can bring in better tenants.

A good property manager knows what to look for when it comes to the type of tenants you should allow on your property. They also know the warnings signs you should avoid. It can be extremely difficult to remove that bad apple, but if you have advanced screening techniques a manager will provide, then you’d never have to worry about accepting them in the first place. It will be easier to discern the good from the bad so you only have residents that pay on time, take care of their unit, cause less issues, and stay longer.

2) Will result in fewer legal issues.

You already know that bad tenant is troublesome, but oftentimes it can become a legal and eventually financial burden. A good manager knows all the laws and has all the tricks up their sleeve so as not to leave you vulnerable.

3) Able to get your units up and running faster after a vacancy.

Once a tenant has left, there is a lot of preparation left in your hands to get the it ready for the next person. Having a property manager makes this process go quicker and smoother. They will be in charge of any cosmetic issues, figure out the best rent rate, and properly market your property or unit so you can maximize your revenue.

4) You’ll receive better tenant retention.

As you well know, there’s a hefty cost that comes along with having a high turnover rate. You have to clean, change locks, paint, have possible repairs, market, and so on. Having a property manager who is good at their job will know how to keep current tenants happy so they want to stay longer. That’s more money in your pocket.

5) You’ll have a better rent collection process.

To have the greatest success at becoming a landlord, you must collect your rent on time every month. Any obstruction to the cash flow means you’re opening the door for failure. Hiring a property manager will allow a sort of buffer between you and your tenants so they can chase down rent if necessary, listen to the excuses, and evict when it becomes too much. There will be less stress on your shoulders.

6) Lower costs for maintenance and repairs.

If you hire a management staff, you will have access to their whole staff, including properly licensed mechanics and repair workers. Having a good team behind you means the tenants are happier, they will stay longer, and make you look great in the process. A property manager will know how to hire these professionals as well as find discounts on the work itself.

Owning and managing your own property can be tough work. It takes a lot of patience, skill, and proper knowledge to be able to know all the ins and outs of the business. Hiring that special someone to take over those duties for you will ultimately save you a lot of money and hassle in the long run.

Written by adminMay 21, 2019

Mortgage

Ask anyone who has ever spent a block of their time renting a room or an apartment, and they’ll tell you how frustrating it can be. Dealing with horrible landlords, roommates, and other tenants is never fun. If you’re one of the numerous renters who are wondering how to take the next step in life by becoming a homeowner, you may not have any idea how to get started.

Here are the top seven questions renters ask while considering if they’re ready to purchase a home:

1) What is my first step?

Before you even start looking, you need to have a good understanding of your financial situation. Unless you have the money upfront, you’ll have to work with a licensed loan officer to determine if you even qualify and how much you qualify for. If there’s a black mark on your record, they can create a plan to help address those issues and get your credit in a bit better shape.

2) Does my credit score affect the interest rate?

Your credit score is a good indication of how well you’ve borrowed and paid back money in the past. This is why lenders use it as a benchmark to determine whether or not they want to offer you a home loan. If you have a poor credit score, lenders might not be so willing to trust you.

Imagine having a friend who asks to borrow $20 from different people in the neighborhood, but never pays anyone back. Eventually he’ll run out of people willing to help him, because word will get out he’s not good with the money previously lent to him. That’s how a credit report works.

Now, even if you have a great credit score, that doesn’t necessarily mean you’ll get a better interest rate, but you will likely be presented with many more options at your disposal than someone with a poor credit score. If you have a good score and some money to use as a down payment, you will have more loan options and be trusted with better offers.

3) Do I need to make a down payment?

The more a person is willing to put down on a house, the better their loan and rates will be in the future. But there is an option available for people who want 100% home financing. 100% home financing means a buyer won’t have to spend a single dollar of their own money on a down payment. The issuing bank will loan you the whole price of the house.

Other programs, like the USDA and/or VA, exist to assist buyers in getting approved for a 100% home loan. Speak with a local mortgage professional for more information.

4) How do I find a house to buy?

Once you have all your financial situation ready, it’s time to start shopping for your new home. To begin that process, it’s highly recommended to hire a local realtor to represent you. When you sit down with a realtor, be prepared with a list of all the amenities you want your home to have. Do you want extra land? A swimming pool? Is there a certain neighborhood or school district you want to stay in? Are there ones you want to avoid? A realtor will help you narrow down your options.

5) Can I find homes for sale only in my area?

When you hire a realtor, they will have access to all the homes for sale in the area through a database called the Multiple Listing Service, or MLS. Every real estate agent in the state lists their homes, photos, and relevant details in that database, making it easier to find exactly what you’re looking for. Only license realtors have access to it as well, so they will have more information about each listing than you’d find on a national real estate website.

6) When do I make my offer?

Once you find the house that suits your needs and fits the general price you can afford, then you can put up your offer. While it can seem like a good idea to take as much time as possible before making a decision, it’s imperative to make a fast offer. A lot of buyers who wait find themselves in a multi-offer situation where other buyers are interested and making higher offers, ultimately costing you thousands of extra dollars if you decide to up your offer.

7) What’s my next step?

Once you have everything situated, it’s a great time to review their current auto, home, and life insurance policies. With this new journey in life, you will want to be as responsible as possible by protecting the ones you love in case the worst happens. It’s the only way to be 100% protected. You may think affording insurance is difficult, but most places will offer bundled savings.

Written by adminMay 4, 2019

Mortgage

You’re excited. You’re at the closing table and have your fingers on the buy or sale, but something happens out of the blue. Suddenly, what was a problem-free situation went sour and you’re left trying to put together the pieces. Real estate is an evolving beast and can often pose new challenges each day, no matter how secure things seem at the time.

Here is a list of a few issues you can run into during your real estate experience:

1) Seller changes their mind

It’s more common that buyers change their mind, but sellers can get cold as well. Buyers can go through the entire process of inspections, appraisal, and on its way to closing only to suddenly get the call the day before that the seller is no longer interested in selling.

This can bring in numerous potential challenges for the seller, as a good real estate agent would then tell them the legal action they could be facing if the buyer wants the house bad enough. That’s why it’s important to have pro/con list when working out whether or not to sell. Agents should know how to tell if a seller is motivated or not and can help connect buyers with the right sellers to prevent this from happening.

2) Buyer remorse

In real estate, bidding wars can happen. It’s only human nature to want to win the war, but realize a few days later that they bid significantly higher than the listing price, and even their budget! This can lead to buyer remorse and a terminated contract.

This is true for first-time owners as well, who often find themselves swallowed up by new and enormous responsibilities. Buyers have a million questions and concerns running through their mind, so it’s important to put together a list of needs and wants to review so the buyer can get their mind back on track.

3) Unknown Structure Issues

Buyers can often be scared of unknown problems with the house. The best way to avoid any issues cropping up is to have a pre-inspection before listing your home, giving you a chance to fix those concerns ahead of time.

Cara Ameer, broker associate and Realtor at Coldwell Banker Vanguard Realty based in Ponte Vedra Beach, Florida, had this to say: “If you’re starting to get into something where it’s more than 2% to 3% of the purchase price, you should think about it. If you’re dealing with structural things, consider how much you want to do.” Anything that’s not fixed can affect your resale value.

4) Sellers Take Permanent Fixtures

A lot of times, sellers will take with them a permanent part of the home, like a refrigerator, chandelier, or other fixture. This often leaves the buyer frustrated as they expected such features to be included, as they were listed. It’s best to double-check which items are personal property and which are part of the home.

5) Choosing a Bad Lender

Not all lenders are created the same. Some are on the ball and make sure all the paperwork is in order and ensuring no problems with the loan. Other lenders aren’t so organized. In one example, a lender dropped the ball by putting a buyer’s file on a back burner, but actually ended up forgetting about it completely! Realtor’s will often have a list of lenders they recommend, so consider those first.

6) Buyer Has No Credit

Yes, lenders can pre-approve loans based on income alone, but what happens later when they come to find they have no credit? It will often be rejected. In most cases, to own a home, some kind of credit on file is needed. If someone doesn’t have a car loan, student loans, etc, then getting a home loan probably won’t happen.

Buying or selling a home can be a quick and easy process, but often times, something comes up. Don’t let these issues happen to you. Plan out all contingencies. Get inspections well before putting anything on the market. If you’re as prepared as possible, the process should go smoothly.

Having an attorney who knows the real estate laws and regulations will only help you in the long run regardless of any issues that might pop up. It can prevent you from being scammed and can take part in ensuring the entire process is safe and legal.

Written by adminApril 24, 2019

Credit & Debt , Loans , Mortgage

It might be wise to weigh your options.

Have you put off buying a house because of your student loan debt? You’re not alone. A study conducted in 2018 shows that 45 million Americans owe more than $1.5 trillion in student loans. With mortgage debt on the rise as well, prospective homeowners have to wonder if buying a house while owing student loans is such a good idea.

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Factors to Consider

If you’re planning on buying a house with student loans, here are some factors that banks and lenders rely on when deciding to issue a mortgage.

Understanding Debt-to-Income Ratios

Having student loans will not prevent you from applying for a mortgage. Banks or lenders will, however, look at your debt-to-income (DTI) ratios to determine your ability to take on a mortgage payment. There are two ratios to look out for, specifically front-end and back-end DTI.

Front-end DTI, or housing ratio, compares your monthly payments to your gross monthly income before taxes. Lenders prefer a front-end ratio of about 28%.

Back-end DTI is calculated by comparing the total debt obligation of the applicant to their gross monthly income. This includes credit card minimums, car payments, and student loans. Most lenders prefer a back-end ratio of 36%.

Student loans can raise your DTI ratios, but it is important to note that if you make enough to offset your DTI, your application won’t be negatively affected.

Credit Score & History

Contrary to popular belief, student loan debt does not lower your credit score. 35% of the FICO score calculation is dependent on payment history. So this means that as long as you make your student loan payments on time, that will be a plus point on your credit history.

Repayment Status

For student loan borrowers on deferment, it may be wise to wait until the deferment period has ended before applying for a mortgage. This is because banks and lenders will take into account the total amount you owe on your student loans when calculating your DTI ratios. This could negatively impact your DTI, as their estimated payment amount will more than likely be higher than what you actually pay monthly.

How to Buy a House with Student Loan Debt

Let’s look at some ways that you can prepare for the mortgage application process to improve your chances of getting approved.

Prepare to Make a Down Payment

The minimum down payment that most banks and lenders look for is about 3%-10%, based on your credit. The ideal amount is 20%, but not everybody can afford that. The smart move will be to plan a budget to put away money each month to be able to put down a larger down payment.

Pay Off Your Student Loans Quicker

One way to improve your DTI ratios is to make more than the minimum payment on your student loans. This will mean a more favorable DTI ratio which in turn means a higher chance of getting approved for a loan.

Enroll in an IDR program

If you would like to lower your DTI ratios but cannot afford to make higher payments on your student loans, you can enroll in an income-driven repayment (IDR) plan. IDRs are available for federal loans, and they can significantly reduce your monthly payments which in turn lower your DTI ratio.

Improve your credit score

It never hurts to give your credit score a boost, and you can do so by managing your debt in a responsible fashion. Keeping your credit utilization as low as possible, as well as keeping your accounts in good standing by making payments on time. This will show the banks and lenders that you have a history of on-time payments and good credit management skill.

Final Thoughts

In the end the decision lies with the prospective homeowner’s goals. Is it more important to you to save money on the interest by becoming debt free? Or is it more important to become a homeowner first, saving money on renting? The answers to these questions depend on the individual’s situation and resources.

If you decide that you need help with consolidating your student loans however, the Financial Helpers are ready to assist you.

Call Now 844-332-2079

Written by adminJanuary 4, 2017

Mortgage , Refinance

The decision to refinance can end up costing you thousands in closing costs and other fees. If you time the rate and term refinance process right, however, you can actually end up improving your financial situation, despite these costs. When you refinance your home loan, your lender generates a brand new agreement, which pays off the balance of your current loan. The new mortgage agreement comes with updated terms, interest rates and payoff dates. Tactical use of rate and term refinancing allows you to improve your potential return on investment without depleting your resources. Here are three beneficial times to choose this refinance option.

Upon Reaching 78% Loan To Value Ratio

If you purchased your home without putting 20% down, your monthly mortgage payment includes private mortgage insurance, or PMI, which can add thousands to the final cost of your home. The PMI funds do not apply to your principal balance or interest costs; it just protects the lender in case of loan default. You are only responsible for paying PMI until your principal balance hits 78%.

You can speed up the PMI removal by refinancing your home loan once you have built up some equity. You can work with a professional to secure an appraisal and determine if your home’s current value has grown enough to eliminate PMI and secure you improved payment rates. If not, you may want to wait until your PMI payments drop off after the 78% mark. For government backed loans, however, you have no choice but to refinance with a different lender to eliminate PMI costs.

At The End Of Your Adjustable Rate Mortgage Term

An adjustable rate loan allows you to make reduced payments at first in anticipation of financial growth in the future. Upon reaching the end of the initial term limits, your monthly mortgage payment could jump hundreds of dollars. If your financial situation has not improved enough by that time, you could struggle to keep your loan payments current, especially when faced with property maintenance and repair costs.

If you refinance at the end of your adjustable rate mortgage term, you could obtain a fixed rate loan with financially viable payment amounts. With the fixed rate option, your payment terms remain static, which eliminates the risk of high recalculation amounts.

After Significant Credit And Income Improvements

If made great strides in your career advancement efforts, you may have experienced income and credit improvements since you first obtained your home loan. These improvements can help you secure better loan terms through a full refinance of your loan. You may qualify for reduced interest rates that drop your payoff amount significantly. As your total loan balance decreases, so do your monthly payments. As a result, you can start paying additional funds toward your principal balance to pay off your home loan even faster.

Choosing Between The Home Loan Refinance Options

Although rate and term refinancing can help improve your financial situation, the returns can take a long time to add up. You can predict the turnaround time by calculating your monthly and total savings, and then comparing them to the costs of the refinance. If you find yourself in a dire need for money right now, you can elect to apply for a cash out refinance instead. With the cash out refinance, you can use the funds to repair or renovate your home, pay down debt or finance other expenses. To determine the best refinance option for your situation, obtain an online quote and compare the results with your expectations. The quote will help you determine if you will benefit financially from the rate and term or cash out refinance options.

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