What are the reasons and benefits of refinancing?
• Lowering your interest rate: Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.
• Convert a an adjustable rate mortgage to a fixed term: converting an ARM to a fixed rate mortgage will allow you to keep payments constant and avoid balloon and spiked payments due to interest rate fluctuations.
• Build Equity Faster: if you are in a position to make higher monthly payments as a result of a salary or other good fortune, switching from a 30 year loan to a 15 or 20 year loan structure will allow you build equity faster and save money by paying less interest.
• Improved credit score: If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. The lender can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.
• Use the equity you have established: A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses. It is important to consider whether or not you have a prepayment penalty written into your existing loan, and why you are refinancing. The lender will want to know what the current property value is, how much equity you have built up, and your current credit score
Now that you have the facts, are you ready to get the refinancing process started? Crosscountry Mortgage would be glad to help you! Give us a call at (877) 828-8851! We would love to hear from you!
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