Refinance and Cash Out Refinance
Take advantage of today’s low rates and refinance or cash out and refinance your home loan to consolidate debt, lower your payments or renovate your home.
With today’s low rates you might be able to cash out and still have a lower payment than you have currently.
Click below for today’s mortgage rates.
Refinance Your Home Loan
There are many reasons that home owners look to refinance their home loans. One of the most common reasons to refinance is to lower your interest rate and your monthly payment. Some of the other reasons you may want to refinance your home loan is to consolidate your debt and pay off high priced credit cards, make home improvements, pay off medical bills and rebuild credit rating that may have taken a turn for the worse.
What is Involved In Refinancing Your Home Loan
When you refinance your home loan, you normally just pay off the old mortgage and sign a new mortgage. Now this will also mean many of the same costs you had when you first purchased your home and signed the original mortgage. Depending upon the State that you live in or the terms of your existing mortgage you may pay a penalty for paying the note off early. (I have not seen this in a long time). The best way to refinance is to contact your mortgage professional at CambridgeHomeLoan.com.
Individuals who refinance their home loans should take into account not only their reason for refinancing but all of the various home loan products that may fit your lifestyle and budget as well as look at several things before doing so.
How Long Do You Plan On Staying In Your Home?
If the answer is that you will just be living in your home for a few more months the monthly savings may not have time to catch up to the costs involved. If there are extenuating circumstances, you may need to refinance for financial reasons so the extra costs may be worth it in the short term.
What Are The New Rates?
Not to be obvious but as a rule of thumb be sure that you find a mortgage rate that is below your current rate.
Some who refinance home loans do so with the intention of building equity in their home faster. Now with this type of loan your monthly cost may be higher than your current home loan rate, even if you obtain a lower interest rate. The benefit is you build equity in your home faster and pay less principal and interest over the length of the mortgage. If you wanted to refinance a 30 year home mortgage to a 15 year mortgage but the cost was to high you may want to quote a 20 year mortgage and still be able to take advantage of the lower mortgage rates but with a more competitive payment.
There are many other reasons that homeowners refinance from wanting some cash out to use for other bills, called a cash-out refinance and to pay other expenses. I have done many a refinance for homeowners that were using the extra cash to help buy a small business or put their funds into an investment, to consolidate debt, pay medical bills that are piling up, re-do their homes /kitchens or even add an extension on to their homes.
With a CambridgeHomeLoan.com advisor you can understand the right options for your refinance or cash out refinance. Between various loan products and current interest rates there are a lot of options to understand prior to choosing the right loan product for you.
The ultimate goal is to reduce your payments or to increase the equity of your home or in short to make your refinancing a simple process to help you continue on your home ownership journey.