The refinancing process is similar to aquiring a mortgage except that it requires fewer steps.
Refinancing your mortgage can provide real benefits. Here are two examples:
- When Loan Interest rates decrease you may be able to significantly reduce your monthly mortage payments.
- When property values increase you may be able to eliminate mortgage insurance and escrow payments or obtain additional cash by refinancing.
When to consider Refinancing:
- A Change in your financial situation: You may be able to match the terms of your mortgage financing more closely.
- Significant Decrease in Interest Rates: If rates have dropped since your last mortgage, you may be able to lower costs, and/or increase your financial flexibility.
- Rates have/are threatening to increase: If rates have increased, or you are worried they might and you have an adjustable rate mortgage, you may consider refinancing to lock-in a rate.