Why should you refinance?

Homebuyers may want to refinance to reduce the cost and interest of their payments over time. 

Some people are able to refinance multiple loans or credit cards with a higher interest rate into their mortgage with one lower monthly payment.

The most common reasons for refinancing:

  • You have two mortgages and would like to consolidate them into one payment
  • You have high-interest debt that you would like to pay off
  • You have a fixed-rate mortgage with a higher interest rate, and would like to get a lower interest rate
  • You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
  • You have a long-term mortgage loan and would like a shorter-term loan to build equity more quickly
  • You have a shorter-term loan and would like a longer-term loan to reduce monthly payments
  • You want to move from an interest-only mortgage to a loan that pays down the principal
  • You need some extra cash to pay off debt or make a purchase

Cash-Out Refinance

A cash-out refinance allows you to refinance your mortgage for more than you currently owe. The difference between the loan amount and the equity is converted into cash for the homeowner.

This cash can be use to pay off other debt, pay for higher education, complete a renovation, purchase investment property or help meet your financial goals.

Lower Fixed-Rate Loan

If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a lower fixed-rate loan.

Also, if you have an ARM, you might consider a refinance to get the stability of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way depending on when the rate can begin adjusting. If you lock in a low fixed-rate, you will have that rate for the life of the loan.

Refinancing to a fixed rate home loan is a good choice if you are not planning on moving within the next three to five years.

Apply Now