When you refinance your mortgage, you are taking out a new loan to pay off and replace your existing loan. This is usually done to accomplish one of several things:
Wondering how much money you could save by refinancing? With interest rates still near all-time lows, now is the time to consolidate debt, complete that remodel, and secure a predictable low monthly payment on your mortgage.*
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With this type of mortgage, the payment stays fixed over the life of the loan. Even if market rates change drastically, payments remain the same from month to month.
This type of mortgage loan is characterized by interest rates that adjust or fluctuate in with the market. They typically offer an introductory/lower interest rate which is set for an initial period of time. After that, the interest rate may rise or fall, as will the monthly payments.
These loans are insured by the Federal Housing Administration and originated by certain FHA-approved lenders. They require a low 3.5% down payment and allow the buyer to finance most of the closing costs*. These loans are designed to assist borrowers who need help getting loan approval because of lower credit scores or limited down payments.
This type of loan is used to purchase higher prices homes. Fannie Mae and Freddie Mac set loan limits for mortgages that are considered “conventional” loans that are taken out in excess of these limits are considered Jumbo Loans.
This type of loan is used to purchase property for investment purposes as opposed to one’s private residence. Often the property will be used for rental purposes, such as a rental home, apartment building, or other space that gives the owners an opportunity to create profit and income over the long term.
These loans are available to active duty or military veterans and are insured by the U.S. Department of Veterans Affairs. They require no down payment and can be used for either a home purchase or a refinance.
The FHA 203k loan program provides home buyers the opportunity to buy and fix up a property without exhausting their personal savings. Home buyers can purchase a property and also finance the repair or remodel costs up to $35,000 in one simple fixed-rate loan.
This Guaranteed Rural Housing Loan Program is offered through the U.S. Department of Agriculture. The program offers assistance to low and moderate-income rural residents whose income is equal to or less than 115% of the area median income. It allows 100% financing with a 30-year fixed-rate mortgage in specifically designated areas deemed “rural” by the USDA.
Reasons why you might want to consider a mortgage refinance:
TILA Mortgage has the top refinance mortgage products available in the market today. With lower interest rates and reduced closing costs, our home refinance programs can help improve your financial situation. Let us help you select the mortgage refinance product for your needs.
Free Up Cash: This type of loan is used when consumers have equity in their home that they want to use for a variety of reasons. These may include remodeling or completing major home repairs, paying for college, making a down payment on another property, or purchasing a personal asset like a car or boat.
Better Interest Rate: This helps you save money either immediately by lowering your monthly payment, or over the life of the loan if you combine the lower interest rate with a shorter loan length.
Debt Consolidation: Interest rates on consumer debts are typically higher than those on home loans, so refinancing to consolidate debt can save you a lot of money on interest – not to mention the convenience of making one simple payment a month. When you refinance, you take out some of the equity in your home to pay off recurring obligations, and often the amount of your new refinanced mortgage is less than the combined total of all your previous debt payments.
Reduce Risk: There are a couple of ways to reduce risk through refinancing. First, you may switch from an Adjustable Rate Mortgage to a more predictable Fixed Rate Mortgage. You may also choose to reduce the length of your loan, allowing you to pay off your mortgage and get out of debt more quickly.
*TILA Mortgage does not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. A debt consolidation may increase your monthly cash flow, but may increase the amount of your debt over a period of time by including the additional debt in your mortgage amount, which is financed over a longer period of time than the debt consolidated may have been financed. We encourage all consumers to do their own research, and examine their options carefully before selecting a particular course of action.