What Does it Mean to Refinance?

February 24, 2021 12:00 am

home model, dollar money and house keysMortgage rates are low nationwide, but the markets are fluctuating. Now may be the right time to refinance your home mortgage. As your Mortgage Planner, I would love to review your current rate with you to determine if this may be the ideal opportunity to refinance your mortgage loan.

By refinancing your home, you are paying off your current mortgage loan with a new mortgage loan that has rates and terms commensurate with your financial interests. The refinance process is very similar to the purchase mortgage process. Fairway will require a new home appraisal – which we order – to determine the current value of your home. We will also verify your employment, calculate your household income and ongoing debts, and make sure that you are qualified for the new mortgage loan.

One of the most beneficial reasons for refinancing a mortgage is to save money on interest expense and monthly payments. Homeowners can choose to invest their monthly savings back into the home to pay it off more quickly, save or invest the funds elsewhere, pay down other debt, or pay for future expenses such as college or retirement. By decreasing the terms of your mortgage, you are also saving money on interest over the life of the loan.

Consider taking advantage of current interest rates and refinancing your home. I would love to connect with you to assess your financial goals and see if refinancing your home is right for you. Call me today to set up an appointment.

 

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