One of the biggest questions a homeowner has after being in their home for a little while is, should I refinance? Well, to answer, it all depends on what your lifestyle and goals are for you and your family.
There are a number of reasons why most people will refinance from their current loan and into a new one, we’ll outline a few of them below. Every single situation is unique. Make sure you reach out to a reputable team of professionals to assist with your needs.
Common Reason #1: Getting a lower payment
Who doesn’t want to lower their mortgage obligation amount? You can do this from a number of angles: lowering the interest rate, removing mortgage insurance, changing the mortgage term.
Common Reason #2: Getting cash out of the home
Sometimes you need a sum of money to invest, pay off debt, etc. Whatever it is for you, this is where you can finance your home for a higher loan than what is owed to take out the difference in cash. Think equity.
Common Reason #3: Shortening the mortgage
By shortening your mortgage term, you can shave off some money over the life of the loan.
Refinancing your home is a similar process to obtaining a loan on a new property. Your mortgage professional will still look at your credit score, two recent W2s, two months of recent bank statements, and two most recent pay stubs. Be ready because you never know when rates will drop or when you might need to make a change to the current loan you have.
If you’d like more information or a booklet about refinancing your home reach out to our team by dropping your info below or giving us a call!