There are many ways in which a homeowner can save money by refinancing. Here are some questions you can consider to determine if now is the right time for you to refinance:
- Do you know if current interest rates are lower than what you are currently paying?
- Has your credit score improved enough for you to qualify for a lower-rate mortgage?
- Would you like to switch into a different type of mortgage program?
- Would you like to consolidate your first and second mortgage into one payment?
- Can you reduce the term of your mortgage loan without a significant increase in payment?
- Has your income situation changed, allowing you to afford a larger monthly payment and a shorter loan term?
Our experienced mortgage bankers are here to help you answer these questions!
When you refinance, you pay off your existing mortgage and create a new one. Refinancing can be a way to lower your payment, shorten your loan term, or even consolidate a first and second mortgage (or other forms of debt) into a single payment which can free up cash flow and simplify paying bills.
Want to shorten your amortization? You can reduce the term of your loan from 30 years to a 25, 20, 15 or 10 year term and save money on the total interest you pay over the life of the loan.
Determining your eligibility for refinancing is similar to the approval process that you went through with your first mortgage. We will consider your income and assets, credit score, other debts, the value of your property and the amount you want to borrow.
To calculate your potential savings, use the calculator below. Enter the specifics about your current mortgage, along with your current appraised value, new loan term, rate and closing costs. The calculator will determine how much interest refinancing can save you and if you should refinance your mortgage. In addition, it will calculate the number of months to break even on closing costs with your reduced monthly payment.