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IS MORTGAGE REFINANCING
RIGHT FOR YOU?
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There are many good reasons
to refinance your home loan: |
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TERM REDUCTION |
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Lowering your term is always a good
idea if the payment structure fits your monthly budget. A lower term means
a quicker payoff of your loan, and will give you more equity in your home with
each monthly payment. More equity gives you many options with handling your debt.
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SWITCH FROM A FIXED RATE TO AN ARM |
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If lower payments are best for your
situation at this time, ARM’s will almost always be the best option.
They are also a good option for those who don’t plan on being in
their current home for more than 3 to 5 years. |
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SWITCH FROM AN ADJUSTABLE RATE TO A FIXED RATE MORTGAGE |
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If you currently have an adjustable
rate mortgage (ARM), it may be time to turn that into a fixed rate mortgage. If
you are coming to an end of the ARM’s fixed rate period, current interest rates
may be low enough to avoid the risk that ARM’s carry after the initial fixed
rate period and turn to an adjustable, variable rate mortgage.
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MORTGAGE CONSOLIDATION |
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If you are carrying a 1st
and 2nd mortgage, refinancing both into one may be your best option.
Rising home values in the state gives you a good chance that you can do this
without paying PMI. Many times combining both a 1st and 2nd
mortgage into a new 1st mortgage will give you a better interest
rate than the blended rate of the current 1st and 2nd
mortgage. |
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CASH OUT (TAX FREE) REFINANCE |
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Taking cash out of your existing
home can be a great way to use the equity in your home. You can use the tax
free cash to buy a new car, buy a boat, payoff a current loan, pay tuition,
consolidate debt, add an addition to your home, or for any other use you may
have. In addition, the interest on the loan is 100% tax deductible.
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To Refinance Your
Mortgage
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