Benefits of Refinancing an Existing Mortgage
Refinancing an existing mortgage can have many benefits for homeowners who plan to stay in their homes for the next several years, including:
- Lower payments. If the interest rate on the new loan is lower than your existing interest rate, you may be able to lower your payment amount and may, at the same time, be able to lower the duration of your loan by refinancing a 30-year mortgage into a 15-year loan.
- Lower your out-of-pocket costs. You may also be able to roll some or all of the closing costs and points into a new loan, meaning you could refinance with no money out-of-pocket.
- Build equity. Refinancing will help you build equity faster should you decide to take the per-month savings amount after the refinance to pay down your additionally per month.
- Access cash. If you have equity in your home, refinancing can help you access that cash. And, if you're also lowering your interest rate, your payments may not rise much, if at all. To learn more about refinancing options, or to become pre-qualified for a mortgage refinance loan, complete our form today.