Buying a home is a major financial decision one needs to make. Home Refinancing is also can be intimidating. It literally has to make sense in term of rate and closing costs before refinance your home. There has to be a “Net Tangible Benefit” to the borrower before refinancing a home. In other words, there has to be a financial benefit to the Borrower such as changing ARM to fixed term with lower interest rate and/or removing PMI (Private Mortgage Insurance) / removing MI for FHA loan. Some borrowers refinancing their home to get Cash Out. Click Here to learn more about Cash Out Refinancing
Lowering monthly payment or shorting the term of the loan are main reasons to refinance your home. You can potentially save thousands of dollars over time. When you refinance your home, it means you are paying off current mortgage and replacing it with a new one. The goal is to get a new loan at a lower interest rate so you can have lower monthly payment.
Another reason to refinance your home is to get cash out. If you have enough equity in your home and have credit cards debts it make sense to use that cash to pay off those debts. Of course, there are many other reasons to refinance your home such as home improvement projects.
However, many homeowners are reluctant to refinance their home due to the paperwork involves in the process. Click Here and fill out a simple form to find out if refinancing your home would saving money and there is “Net Tangible Benefit” to you.