Refinancing is a great way to save money with your mortgage. When you refinance you apply for a new loan that will pay off your existing loan. Your new mortgage will have a new rate and term which will either reduce your monthly payment or shorten the term so that you pay off your mortgage faster.
There are fees to do this that can either be paid out of pocket, included in the new loan, or can be credited to you for doing a slightly higher rate which is also known as a ‘no closing cost’ loan. This is highly controversial because many lenders define “closing costs” differently. So when you are shopping for a lender to trust and do business with, it’s important to remember this if you hear “no closing costs.” Our consultants are trained to determine what your goals are and recommend the best closing cost structure to fit your needs.
When refinancing your mortgage, you can also take cash out from your equity and use it to remodel or upgrade your home or use the money to pay off other debts like credit cards or student loans. This effectively combines all of your bills into one payment. Our loan consultants are experts with showing our customers which bills are most important to consolidate to free as much cash flow as possible.