Refinancing Your Mortgage
Refinancing has so many inherent benefits; you can score a better interest rate, lower your monthly payments or even go as far as leveraging your home to offset other expenses. But you will need to do it the right way. The worst that can happen is spending money on the process and eventually, you get to realize you’re not saving that much on your mortgage.
Will a mortgage refinance be of great benefit to you? How will you know you’re ready for mortgage refinancing? With several thousands in annual savings, the time to refinance your home in Seattle, Bellevue, Issaquah and Washington States is now!
The Essentials of Home Refinancing
What is the meaning of refinancing? This is the act of taking on a new loan with new loan terms. The reason to take on refinancing of your mortgage are shortening the term of your loan (30 year fixed to 15 year fixed) or better still, using equity that you’ve built up over time for cash back— and lowering your payments.
Refinancing your home is dependent on a number of factors, but in most cases, it’s importance to understand the motive behind it first before going ahead. Below are the reasons homeowners are refinancing their mortgage:
- Paying off mortgage at a faster rate
- Lowering monthly payments
- Getting cash back for home improvements, or pay off debt
- Earning more from their investment
What is the Cost of Refinancing?
You can add the cost associated with a new mortgage into the total refinance amount. This will help you a great deal at closing as you’ll not be paying anything out of pocket. But if you’re refinancing to get cash out or lower your payment, it may stretch the loan term to a higher rate, which means paying more in interest overall for a longer period.
When is the right time to Refinance
There’s no specific time frame or guideline to follow as regards refinancing after buying a home. The important thing here is meeting your financial goals. The following questions should come into mind when determining the right time to refinance:
- Is there’s a prepayment penalty in place from your current lender?
- Does your home have enough equity?
- What are the interest rates now? Are they lower now than when the purchase of your home was made?
- Are you planning on living in your home for many more years to come?
At Cascade Equity Group, Inc. we understand that there are more to your financial circumstance than is currently reported by credit agencies. We put into consideration your unique financial standing when refinancing. Learn the different ways you can refinance your mortgage with us.