Refinance
What is a Refinance?
Refinancing is when a homeowner decides to revise and adjust the terms of an existing home mortgage. Often when one chooses to refinance, it is because the changes will benefit them monetarily in the long run.
Benefits of Refinancing?
Refinancing your home can provide many long-term benefits based on your specific goals and needs.
1.
Access Equity
You can use a refinance to pull cash out of your equity to finance a major expense such as home improvement.
2.
Is a refinance loan right for you?
Refinancing into a lower interest rate can reduce your mortgage payment providing more monthly cash flow. One may also reduce the term of the loan, resulting in less interest paid over the life of the mortgage.
3.
Financed Closing Costs
Closing costs may be financed into the loan amount, resulting in no funds required at the closing table.
Refinance Loan Characteristics
Loan Options: There are fixed rate or adjustable rate options in loan terms ranging from 10, 15, 20, 25, and 30 years based on your specific goals and needs. There are also a variety of loan types that may be used to accomplish a refinance.
Property/Residency Types: Refinances are permitted on primary residences, second homes, and investment properties depending on loan type.
Closing Costs: Refinances have closing costs similar to a purchase but they may be financed in the loan amount rather than paid in cash. Anything that remains in your current escrow account when your existing loan is paid off will be refunded to you in the form of a check after closing.
Ideal Candidates for a Refinance
Borrower: Anyone with an existing mortgage that would like to either reduce the rate, reduce the term, access equity, or remove mortgage insurance.
Credit score: This will depend on the specific loan type chosen to accomplish your goal.
Is an Refinance Loan Right for You?
If you’re thinking of refinancing your home, the first thing you should do is talk to a lender about your options. At Desert Canyon Mortgage, we offer free, no obligation pre-approvals and price quotes, and we are happy to sit down with you to go over all considerations and make sure a home refinance is the right option for you.
