Refinance Loan
Refinance mortgage loans involves replacing your current loan with a new one and restructuring it to suit your current financial goals. This process can save you a significant amount of money over the life of the new loan and potentially improve your overall financial outlook.
Understanding Refinance Mortgage Loan
A refinance loan is a type of home mortgage loan where you replace your current loan with a new one that has more favorable terms. By refinancing, you can potentially save a significant amount of money over the life of the new loan and improve your overall financial outlook.
Refinancing is a popular option for homeowners when interest rates have dropped significantly since they initially bought their home. In this case, the new home mortgage loan may charge less interest over time, saving you money.
Another reason people choose to refinance is to take cash out of their home’s equity, which is the difference between the home’s value and the amount of the mortgage still owed. This cash can be used for home renovations, debt consolidation, or other major expenses.
Refinancing your mortgage loan can have several benefits, such as shortening the loan term to save money, refinancing into a lower interest rate to lower monthly payments, converting an adjustable-rate mortgage to a fixed-rate mortgage for more security, consolidating debt into one loan for simplicity and savings, and turning your home equity into cash.
So, if your home’s value has significantly increased or interest rates are lower than when you purchased your home, refinancing your mortgage loan may be a smart decision.
Features
Paying off your current home mortgage loan with a new loan.- Restructuring the new home loan to fit your current needs and goals.
- Saving a considerable amount of money over the life of the new home mortgage loan.
- Potentially improving your overall financial outlook.
- Getting a new loan with more favorable terms.
- Refinancing when interest rates have gone down significantly.
- Taking cash out of your home’s equity for renovations or other major expenses.
- Shortening your loan’s term to save even more money.
- Refinancing into a lower interest rate, which might lower your monthly mortgage payments.
- Converting your adjustable-rate mortgage to a fixed-rate mortgage.
- Combining a first and second lien into a single loan for simplicity and savings.
- Consolidating debt from higher interest rate credit cards or subordinate financed loans into one loan, which may result in lower monthly payments.
Frequently Asked Questions
What is a refinance loan?
A refinance loan involves replacing your existing home mortgage loan with a new one that has more favorable terms. By refinancing, you may be able to save money on interest payments and potentially improve your overall financial situation.
When is it a good idea to refinance?
Refinancing may be a good idea if your home’s value has significantly increased or if current interest rates are considerably lower than when you initially purchased your home. Additionally, you may want to consider refinancing if you want to shorten your loan’s term to save money, convert an adjustable-rate mortgage to a fixed-rate mortgage, consolidate debt, or turn your home equity into cash.
These are just a few common questions and answers about Refinance Mortgage loans. If you have more specific questions, it’s always best to consult with your Globus Capital advisor who can guide you through the process.
*The appraised value of the property may influence the loan amount.
**Generally, cash from equity is tax-free. However, this information should not be considered as tax or financial planning advice. Consult a tax advisor for tax-related advice and a financial planner for guidance on improving your retirement plans. Emortgage capital is not associated with any government agencies. The materials presented here are not from HUD or FHA and have not been approved by HUD or a government agency. To be eligible for a reverse mortgage, borrowers must obtain a certificate by attending counseling sessions with a HUD-approved agency. The borrower must be at least 62 years old. Loan proceeds are not considered income and will not impact Social Security or Medicare benefits. However, your monthly reverse mortgage advances may affect your eligibility for certain other programs. Consult a local program office or an attorney to determine how, or if, monthly reverse mortgage payments could affect your specific situation. At the end of the reverse mortgage loan contract term, you may no longer own some or all of the equity in the property subject to the reverse mortgage, and you might need to sell or transfer the property to repay the reverse mortgage proceeds with interest from your assets. We will charge fees for origination, mortgage insurance, closing costs, or servicing for the reverse mortgage, which we will add to the loan balance. The reverse mortgage loan balance grows over time, and interest will be charged on the outstanding loan balance. You retain the title to the property subject to the reverse mortgage until you sell or transfer it, and you are responsible for paying property taxes, insurance, and maintenance. Failure to pay these amounts may cause the reverse mortgage loan to become due immediately. Interest on a reverse mortgage is not deductible on your income tax return until you repay all or part of the loan.
Craig Kaminski
NMLS #: 1417248
licensed by:
E Mortgage Capital, Inc. d/b/a E Mortgage Capital,
NMLS# 1416824
(www.nmlsconsumeracces.org)