With interest rates on the rise following the 2016 election, it’s possible that you’re now considering your options for refinancing your current mortgage. It can sometimes be hard to know all of the ins and outs of making this choice, though, and it’s important to know what’s involved. If you’re trying to determine if refinancing will work for you, here are some of the basics on this option and what it can mean for your equity.

Acquiring A Lower Interest Rate

One of the most common reasons for re-financing is to get a lower interest rate on a mortgage in times of a fluctuating market. While it may seem like this is more hassle than its worth, if you are able to get an improved rate, this can add up to considerable savings over time. While the once suggested percentage for refinancing was 2%, with economic times changing it can be worth looking at the numbers to determine if this option is financially viable for you.

Building More Equity

The great thing about negotiating a better interest rate for your mortgage is that it will not only lower your monthly mortgage payment, it can be a greater financial benefit over time. For example, if you have an 8% interest rate on a $250,000 home, adjusting your rate to 6% per month will mean a decrease in your monthly expenditures. Since you’ll be paying less interest overall, you can up your monthly payment and pay off the principal even more quickly.

Will Refinancing Benefit You?

While refinancing can be a great option if you’re able to get a better rate and are planning on staying in your home to reap the benefits, there are things to consider when making this choice. If you’re refinancing in order to make a big expense or renovate, these may be financially beneficial choices, but they can also be bad for the bank if budgeting isn’t kept in mind. It’s also worth realizing that there will be fees associated with refinancing, from the appraisal to the application, so ensure the new rate makes up for these costs.

There are many benefits associated with refinancing your mortgage, but it’s important to be aware of the costs involved and the financial benefit to you in the long term before making a decision. If you’re currently reconsidering your mortgage, contact one of our local mortgage professionals for more information.

When it comes to your mortgage, there are a lot of key terms that are important for every homebuyer to know, and this is no less true than when it comes to refinancing your most important investment. Instead of leaving what’s unknown up to chance, it’s important to be aware of exactly what you’re looking at so you can get the best mortgage product available. If you’re currently considering refinancing and don’t want to get snared by unknown terminology, here are some terms you’ll need to watch out for.

Cash-Out Refinance

This type of refinance is a transaction where the home’s mortgage amount is higher than the existing mortgage amount, and cash-out refers to the extraction of equity from the homeowner’s home. While this type of refinancing can be a means of tapping into extra cash to help you with monthly expenses, it also means that the cash you take out of your equity will be added to the balance you already owe on your home.

Rate-and-Term Refinance

This type of mortgage transaction involves the refinancing of an existing mortgage so that you can take advantage of a different interest rate. While this type of change will not alter the amount of your home loan, it will adjust the interest which means that your monthly payments may be lowered and your may have a shorter amortization period due to overall reduced costs. These types of loans can often come with lower interest rates than cash-out refinances.

Streamline Refinancing

This type of refinancing is offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs, and it is also offered by certain financial institutions. While this type of refinancing has its own set of stipulations, it is directed at those who want to take advantage of low interest rates or get out of an adjustable rate mortgage (ARM). While you may need to have a financial appraisal done in order to qualify for this option, it’s also possible that this will not be required to qualify.

There are a lot of key terms that go along with having a mortgage and refinancing it, but if you’re considering your options it’s very important to know what all of them mean so you can be sure you’re making the best decision. If you’re currently considering refinancing your home and need helpful advice, contact your trusted mortgage professional for more information.

As a homeowner, you may have heard the term re-financing without being aware of exactly what it means, but there are a lot of pros and cons associated with what it can do for your financial situation. While getting a different new loan for your mortgage can be a good financial decision in certain situations, here are some things you should consider before you decide that this is the right choice for you.

Getting A Lower Rate

One of the main reasons that re-financing can be a popular option for many homeowners is that it can provide the opportunity for considerable money savings. Since you will be acquiring a new loan with a lower interest rate, this will be an opportunity to reduce your monthly payments, increase your equity at a faster rate and invest the extra funds into something else. While a lower rate can definitely mean money savings, it’s important to consult with a mortgage professional so you’re aware of any associated fees and can make a decision that will be financially beneficial.

Consolidating Your Debt

It is often the case that people will choose to refinance their mortgage with a lower-interest rate in the hopes of paying off the debt they’ve accumulated, but with the cost of refinancing this is not necessarily the best financial decision. While consolidating debt can be great if you go into it with a budget that you plan on sticking too, if you’re leaning too much on the idea of a lower interest rate meaning instant savings, it may be a good idea to take a look at the numbers.

Investing In Your Home

For many people, re-financing their mortgage is a good opportunity to renovate their home and increase its value. However, while renovating your home can be a good idea for resale, there are many home renovations that will not necessarily increase the value of your home and make up for the amount you’ve invested. If you’re making forward-thinking renovations, refinancing is one thing, but ensure you’ve seriously considered what will add value.

There can be a number of financial benefits when it comes to refinancing your mortgage, but it’s important to work out your tentative budget and crunch the numbers before you make a final decision. If you’re currently looking into re-financing your home and are curious about what it entails, contact your local mortgage professional for more information.

Whether you’ve decided to renovate your home or you would like to consolidate your debt, refinancing your mortgage can be an option in times of money trouble; however, it’s important to know whether or not this is the right step for you. If you’ve been considering refinancing recently and are wondering how to come to a decision, here are some questions you should ask yourself before wading into the water.

Do You Have The Extra Time?

It may sound silly, but looking into the details of financing your mortgage can take up a lot of time, and if it’s going to be stressful or tax your abilities too much, you may want to hold off until things change. Because there are so many details associated with refinancing, and the security of your largest investment hangs in the balance, it’s important to have the time to research and understand all the small stuff so you don’t fall victim to a bad loan or confusing mortgage terms.

What’s My Interest Rate?

It’s entirely possible that refinancing may not be worth it if you can’t get the interest rate you’re expecting, so don’t be taken in by low rates you may have come across. Because many unreliable lenders will offer the lowest rate to get your business, it’s a good idea to do the research and go with someone you can trust. Your credit score and financial standing will have a lot to do with the rate you qualify for, but if the interest isn’t as low as you’ve calculated, it may not be a beneficial financial decision in the end.

Will This Help My Financial Situation?

No one decides to move forward with a mortgage refinancing without thinking that it’s a good financial decision, and that’s why it’s so important to carefully weigh all of the variables before deciding refinancing is for you. From a job loss to a home relocation, there are many things that come up in life that we are not always financially prepared for, so make sure to consider as many possible pros and cons as you can before moving forward with this option.

Many people think that refinancing their mortgage will improve their financial situation and eliminate their debt, but it’s important to consider all of the outcomes of this choice before coming to any final decision. If you’re currently considering refinancing, you contact your local mortgage professional for more information.

In an effort to boost the value of their property, many homeowners invest in renovations that will help them sell at a higher price. However, with all of the renovation options, it can be hard to know what kind of fix-ups are really worth investing time and money into. If you’re looking at all of your options for home improvements, here are some surefire fixes that won’t stress the bank and will probably bump up the offering price.

Add In Stainless Steel

The look and functionality of the kitchen is one of the deciding factors for many homebuyers, and this means that if you have old appliances or an outdated look, you should definitely spend some money on a little upgrading. Since kitchen renovations can be a significant expense when it comes to knocking out walls and adding an island, you may want to stick with smaller stuff like a stainless steel appliance replacement or even renovating your cabinets for a more up-to-date look.

Increase Energy Efficiency

With the push towards reducing overall housing costs and being environmentally sustainable, making your home more energy efficient can be a huge selling feature for the kind of buyers who will be able to save money as a result of renos. While there are many financially taxing overhauls that can seriously bust the bank, try simple fixes like adding extra insulation where drafts exist, and installing LED lights for lowered energy costs and longer light bulb expectancy.

Prep For Paint

It may require a little bit of work to get the job done, but re-painting your home can be one of the best, and most economical, means for upping the value of your home. While painting can still be an economical option even with professional painters, a shiny new coat can take years off the look of your house and instantly improve its appearance. You just need to make sure you choose a neutral color and a high-quality paint for maximum effect.

While taking on home renovations will require a bit of spending, it can be a great idea if you’re re-financing your home and are looking to boost its value. The only thing to keep in mind is making sure you choose the kind of fixes that will be inexpensive and popular on the market. If you’re currently looking into your options for re-financing, contact your trusted mortgage professional for more information.