What does it mean to refinance? It means you obtain a new mortgage and we use the new loan to pay off your current mortgage. You end up with a new loan that suits your needs better.
So, if interest drop lower than your current rate, it could be worth it to refinance. Or, if you want to improve your property and have a lot of equity in your home, you could do a 'cash out' refinance and use the cash to improve your home.
Frankly, there are many reasons why someone might want or need to refinance. Here are a few reasons. Do you see yourself in any of these life positions?
- You are divorcing and want to keep the home, but you want to be relieved of the liability of that mortgage so you can purchase your new home.
- You are divorcing and your spouse wants to keep the home, but you want your portion of the equity.
- Your home needs a makeover and you want to get the cash out of your equity to improve and update your home.
- Life happened and you find yourself in a lot of debt. You could use the equity to consolidate your debt and save a substantial amount of cash flow each month.
- You purchased your home when interest rates were higher, and you would like to get a lower rate, which will subsequently lower your monthly payment.
If you believe a refinance might be a good option for you, it would be my pleasure to help you. I will run some scenarios for you and analyze the numbers to make sure a refinance is in your best interests. Call me! ~~ Jill ~~