Is Refinancing the right choice?

Similar to a living, breathing organism the realty market grows, evolves, expands, contracts, progresses, and backtracks. The environment around it impacts all of these variables.  As a result of this vibrant nature, the most effective funding alternative when you buy your house might not always be as desirable a couple of years later. With Fellowship Home Loans, you have the ability to gain from favorable adjustments in the market by refinancing your home loan. Though homeowners opt to refinance for a selection of factors, most commonly:

 

  • Locking in Lower Interest Rates: If interest rates now are much lower than when you originally signed on the dotted line, you might have the ability to lower your payments by refinancing. The two price differences don’t have to be anything crazy big either. An adjustment of just half a percent can decrease your monthly loan payment significantly. Naturally, prices differ based on your place plus a variety of various other elements. Don’t hesitate to speak to a Fellowship agent for more information regarding the present prices in your location. We will also advise on whether refinancing is the best option or if there is another choice to lower your monthly payment.
  • Changing to a Different Loan: Back in the day, adjustable rate mortgages we the way to go… but now with higher rates, the fixed rate mortgage is what borrowers are interested in. Prices can increase and with an adjustable rate mortgage your susceptible to many factors. Getting rid of the adjustable rate mortgage means you can reduce your month-to-month and also be at ease knowing your payment will be the same every month without fluctuating.
  • Making the most of Improved Credit Scores: We use a range of choices for enthusiastic homeowners that have credit history dropping below the “outstanding” number most loan providers demand. While we love helping customers with lower credit scores, many frequently have a larger interest rate and thus higher monthly payments. If you started with a lower credit score and have since improved it – refinancing will help you lower your interest rate and your monthly payments.
  • Obtaining Cash for Home Improvements: Let’s say you want to upgrade your home and add a new home office. As opposed to getting an additional loan to pay for that, you can refinance your mortgage and select the cash-out choice. You’re more likely to be able to benefit from a better interest rate when you refinance and receive “funding” with your home loan compared to signing up for a whole other loan. In comparison to getting a loan or utilizing a credit card – any kind of interest rate you pay on your cash-out refinance is tax deductible. You also won’t have additional debt hanging over your head during your renovations.
  • Financial Debt Consolidation: If you select cash-out refinancing, it doesn’t always have to be for renovations. You can invest it for almost anything you need. Whether it’s paying off outstanding student loans or simply your credit card you can do it. Though this alternative could increase your monthly loan payment or expand the life of your loan, you’ll have more cash to set aside for the monthly mortgage if you go with this option.
  • Remedy for the Cost of Private Mortgage Insurance: If you’re one of the property owners that bought your home with less than a 20% down payment or if you’ve built up a lot of home equity you might qualify for eliminating monthly PMI payments. By refinancing, you could have the ability to finish the PMI repayments prior to your automated cutoff point. Fellowship Home Loan professionals are here to assess your situation and see if refinancing to reduce the PMI would be helpful for you or if there is a better option.
  • Repay Your Mortgage Sooner compared to Planned: When it comes to refinancing most are concerned with simply reducing the monthly payments, but you could also completely pay off your home with a refinance. If you’re in a better financial place now than when you purchased then you can switch from a 30-year to a 15-year loan and pay it off much quicker with no penalties.

 

Evaluate Your Options Carefully

Although home owners stand to get a good deal from refinancing their present home loan, it’s not always the best choice for everybody. It’s vital to think about all the realities prior to making a decision to refinance. Every situation is different.  We would be thrilled to assess your individual situation with our professional insight to see if we can help.  Call our loan officers today to learn just what advantages would be readily available to you.

Contact us at 1-800-804-SAVE (7283) to learn more about refinancing and the options you have.

Get a personalized loan consult with one of our experts today.