A Freedmont Mortgage® guide to mortgage refinancing.
When you refinance, you take out
a new mortgage with a lower rate or
more favorable terms, and use it to
pay off your old loan. As a result,
refinancing could save you a substantial
amount of money over the course of
the loan.
Traditionally, mortgage refinancing
was valuable only if you could lower
your interest rate by 2%. Today, that
isn't the case. You need to consider
more than just an interest rate.
Why should you
refinance?
- Lower your monthly mortgage payment
- Save money for other uses
- Consolidate debt
- Build home equity faster
- Protect yourself from fluctuations
in the economy
These are all good reasons to consider
refinancing. In this section, find
out how to determine whether it's
time for you to refinance and learn
more about the benefits of mortgage
refinancing. Use our online
Debt Analyzer to help guide your
decision.
At Freedmont Mortgage® , our loan specialists
are trained to listen to your needs
and carefully assess your financial
situation. Only then will we recommend
a customized solution that makes sense
for you. Ready to get started?
Begin our application process online
or call 1-800-955-8508 for a no obligation,
free consultation.
When you refinance an existing mortgage,
you borrow money and use those funds
to pay off your current mortgage.
Most people refinance their mortgages
to get a lower interest rate. The
lower rate translates into a faster
mortgage payoff or a lower monthly
payment.
But a low rate
isn't the only reason you should
consider.
- You want lower monthly
payments
A lower rate may mean lower
monthly payments. Consider taking
out a new loan for the same length
of time that remains on your current
mortgage.
Choose this option if:
you plan to stay in your home
for the life of the mortgage or
need more cash for current financial
obligations such as college or
a new car.
-
You want to pay off your
mortgage more quickly
You may be able to shorten
the length of your mortgage (say,
from 30 to 15 years) while keeping
your monthly payment at or near
its current level. You could save
thousands of dollars in interest
and assume full ownership of your
house more quickly.
Choose this option if:
you don’t plan to stay in
your house for very long and you
have ample current cash for your
current financial obligations.
- You want to lock in a
low rate
Refinancing may a handy way to convert
your Adjustable Rate Mortgage into
a fixed-rate mortgage, ensuring
a stable mortgage payment. Check
first to see if your current loan
has a no-charge lock-in feature.
Choose this option if:
you expect the rate on your ARM
to go up.
- You want a better Adjustable
Rate Mortgage
A new adjustable rate program may
be available that has more favorable
rates and terms than your current
loan.
Choose this option if:
you are unhappy with the terms of
your current ARM.
- You want to consolidate
debt
If you have enough equity in your
home, you might want to combine
a home equity loan with your original
mortgage and have one manageable
payment. Or you might want to wipe
out some other high-interest debt,
such as credit and charge card balances
or installment loans.
Choose this option if:
you have multiple debt obligations
and want to simplify your payments.
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