There are many benefits of Refinancing. The number one reason that many people refinance is to get a lower interest rate on their mortgage. Some even choose to buy points to lower their rate. A lower rate translates to lower payments, which means you'll pay less for your home overall.**
Getting a new mortgage to replace the original is called refinancing. Refinancing is done to allow a borrower to obtain a better interest term and rate. The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate. Borrowers with less than perfect, or even bad credit, or too much debt, refinancing can be risky.
It can be difficult sometimes to make the payments on a home mortgage. Between possible high interest rates and an unstable economy, making mortgage payments may become tougher than you ever expected. Should you find yourself in this situation, it might be time to consider refinancing.
PAY LESS = SAVE MONEY
Looking to lower your monthly payment? Shorten the term of your loan? Reduce your interest rate? Cash out your home equity? We can answer your questions so you can determine the right option for your financial situation.
We recommend getting all your paperwork in order. Staying organized helps the process run smoothly and seamlessly so you can feel confident knowing you are prepared and MDE Home Loans feel confident that we can help! Working with our team will ensure that your Do's & Don'ts checklist is prepared and all your required documents are signed. Tracking your progress digitally is a good way to see all your next steps. MDE Home Loans keeps your finances strong and healthy!
Want to learn more about REFINANCING and how MDE Home Loans can help you?
**In some cases, refinancing may cause the total finance charges paid over the life of your loan to be higher.