If I just refinanced a year or two ago, does it make sense to refinance again?
That depends on the mortgage amount, interest rates and
how long you plan to stay in the house. With current home
loan rates at historic lows, along with the many new home
loan programs on the market, now is a great time to explore
your options. Call me today for a free no obligation home
How much could I save on monthly payments?
You can figure to save about $30 a month for each half-percentage-point
drop in interest rates on a $100,000 loan. The savings would
be twice as much for a $200,000 loan - or if the percentage
drop were 1% instead of 0.5%. You can use this as a gauge
to estimate the savings for your loan.
Can I take cash out when I refinance?
Yes! Refinancing allows you to tap the equity in your home. Many use this cash for major purchases and projects like home improvement. In fact, capital home improvements (such as building an addition, adding a swimming pool, new yard, or a new roof), increase your home's value. You can even fund your child's education through refinancing!
Is it better to refinance with my current lender?
There is a general misconception that it is easier to work
with your current mortgage company. In most cases your current
mortgage company will require the same documentation as other
companies. This is because most home loans are sold on the
secondary market and have to be approved independently. So
even if you have been very good at making payments to your
existing lender, they will still have to do their verifications
all over again.
Does it make sense to refinance a fixed-rate home loan in favor of an adjustable rate home loan?
Because interest rates on adjustable-rate mortgages fluctuate, it depends on how long you plan to stay in the house and how much you're willing to risk a rate increase. Often times the monthly savings on adjustable rate mortgages can be dramatic. Call me for a free home loan analysis.
Can I refinance with no out-of-pocket costs?
Yes, by rolling the cost of refinancing into your mortgage.