Should You Refinance? (What You Want To Know Wednesdays)
Deciding if refinancing your mortgage can be a bit of an intimidating decision. First, let’s talk about what kind of refinance options there are.
Two major types of refinances:
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Rate-and-Term refinancing to save money. This type of refinance can save you money by reducing the amount of interest you’re paying and can shorten the term to also save money.
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Cash-out refinance. This type of refinance is where you take out a new mortgage for more than what you owe. You take the difference in cash or use it to pay off existing debt.
Some other reasons to refinance worth mentioning are: to change from an adjustable rate mortgage (ARM) to a fixed rate mortgage, to settle a divorce (or take someone off of your existing loan,) or to eliminate FHA mortgage insurance.
Rates are changing, but they are still low. Talk to a mortgage professional today, see how you can benefit from a refinance!
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.