1. Why should I refinance my current mortgage?
There are a number of reasons you may want to consider refinancing your current mortgage.
- Lower your interest rate, thus lowering your monthly payment.
- Maximize your cash flow with lower payments for a longer term.
- Convert an adjustable rate mortgage to a fixed rate mortgage.
- Pull cash out of the equity in your house to use for other things, such as paying off debt, home improvements, college education, etc.
- Consult your loan officer to see if refinancing is right for you.
2. What factors should I evaluate when considering refinancing?
Consider the following factors when making your decision:
- What is the difference between your current rate and the new rate?
- How long do you plan to be in the home?
- What are the costs associated with the refinance?
- What is your break-even point for the refinance?
- Do you feel comfortable with the new payment?
- Do you need to pull out equity from your house?
3. Can I take cash out of my house when I refinance?
Yes. There are limitations on the amount of cash you can take out, but some programs allow cash out with loans totaling as high as high 100% of the total value of your home. Your loan officer can give you details on the various options available to you