A mortgage refinance involves applying for a new mortgage to replace the existing mortgage on your home. There are several advantages to refinancing your mortgage, and Home Loan Solutions is here to help you explore those advantages.
However, there are several questions to ask before refinancing – questions that can help you determine whether now is the right time to refinance. Those questions include:
Why are you refinancing?
If your reason for refinancing is to consolidate debt or pay off a large expense, then refinancing your home can be regarded as an investment. If your reason is to buy a luxury item, then you may be putting yourself in debit with nothing to show for it. However, obtaining the lower interest rate may be worth it to some people, no matter their intention for the cash pay-out. Most mortgage professionals only recommend refinancing when the pros outweigh the cons.
Are you planning on paying off your current loan early?
If so, then refinancing into a short term adjustable rate may be an option. Every refinancing transaction should begin by consulting with a knowledgeable professional who can help you determine whether refinancing now is in your best interests for the future.
How many points will you pay?
When it comes to refinancing a mortgage, “points” refers to the percentage points of the value of your loan. Home Loan Solutions can help you weigh the point value of this new mortgage against the interest rate to see if refinancing is the right choice. We also offer “zero fee” loans, so please call us today for a free consultation.
Will you come out ahead?
Refinancing a mortgage is a smart decision in many cases, but some homeowners wish to know if they will “come out ahead” when all is said and done. Refinancing calculators, like the one provided on this website, can help you determine whether this is the case for your refinance.
We invite you to continue reading about refinancing your home; then, contact Home Loan Solutions today for a free home refinancing consultation. We look forward to hearing the details of your situation and helping you make an informed decision about refinancing.