Many homeowners have experienced a moment when they have wished for a lower mortgage payment. With a mortgage refinance, you could effectively lower your monthly payments. Not sure where to begin with refinancing or whether it's right for you? We've got you covered with some tips and considerations.
When you refinance a mortgage, you're essentially taking out a new home loan and assuming its terms. The money from this loan is used to pay off your existing mortgage. A refinance loan with a lower interest rate than your original loan can eventually save you a significant amount of money. Meanwhile, depending on how much equity you have in the home and how much of your original mortgage was paid off, you can significantly lower your monthly payment as well.
The best way to know for sure is to consult with a loan specialist, who will crunch the numbers based on your current loan, your home's estimated value, current interest rates and other factors. If the amount of money you'd save by refinancing outweighs any closing costs or other fees you would incur by closing on the new loan, it's probably worth refinancing.
If you're thinking about refinancing, it's a good idea to consult with a few reputable mortgage lenders to see what loans and interest rates you can qualify for. From there, you will need to fill out a formal loan application. Some lenders may also require an appraisal on your home; if this is the case, be prepared to pay for the appraisal out of your own pocket.
Once the loan is approved, you will go through a similar closing process as you did when you first bought the home. From there, you can begin enjoying lower monthly mortgage payments and a lower interest rate on your loan. Some homeowners will continue to pay their previous mortgage amount in order to pay off their loans early.
Hi, I am Debra Calnan, I have been an active member of my community for over 30 years and I am so excited to be turning that community focus toward Real Estate. My decision to enter the field of Real Estate evolved from a life long love of helping others and a desire to be part of a business that helps guide them through one of the biggest investments of their lives. I enjoy helping people Sell their home and Buyers find the right home and guide them through the process to make those dreams become a reality.
I am down to earth, hard-working and a person of integrity. I am also dedicated to great client services. Allow Lamacchia Realty to guide you through the real estate process. We are here to help make the process go as smooth and stress-free as possible. We think of our clients like family and hope that our first transaction turns into a long term relationship where you will want to refer me to your family and friends.
