Refinance Loans – Lower Your Monthly Payment & Interest Rate

About Home Refinance Loans

Refinancing can have many benefits and make good financial sense. Here are some of the most common reasons people refinance their homes.

Lower Your Interest Rate: When it comes to your monthly mortgage payments, the interest is the most significant portion of your payment for the first ten years of your loan.

Lower Your Payment: If you feel stressed over your finances every month, refinancing your loan can give you some breathing room.

Get Rid of Mortgage Insurance: If the value of your home has gone up, you might be able to refinance your FHA loan. As long as you have 20% equity in your home, with an appraisal showing the new value, you can get rid of the mortgage insurance and get a conventional loan.

Consolidate Your Debt: If credit card debt is stressing you out, then refinancing may be a way to consolidate your debts and take the pressure off. This can be an excellent way to eliminate the high-interest rates you’re paying on your credit cards and have only one payment at a lower interest rate.

Access Cash for Repairs and Home Improvements: If your air conditioner broke and you need a new roof, taking the cash out of your equity makes more sense than adding it to your high-interest credit cards.

Refinance Loans Qualifications

The following are three essential steps that you’ll need to qualify for refinancing your loan.

1. You’ll need to consider your credit score. For example, in the case of an FHA or VA loan, you need a credit score of at least 620 or 580 to refinance.
2. A mortgage lender will look at your debt to income (DTI) ratio. The less debt you have, the better chance you’ll get approved. If you have a lot of debt, you can take your equity to consolidate your debt.
3. You’ll need to take a look at your home equity. You will need 20% equity and a conventional loan to remove your mortgage insurance premiums. If you are short of the 20% equity, you may want to wait before refinancing until the equity increases.

If you’re not sure if you can qualify, contact us. And we will go over the details with you in-depth to see what your options are.

Key Things To Consider For A Refinance Loan Program

Here are a few things to keep in mind when considering refinancing your mortgage.

• When interest rates are lower than what you are paying, it’s a good idea to look at refinancing to shorten the term of your mortgage and pay less in interest payments.
• One of the best reasons to refinance is to get a lower interest rate on your loan.
• Consolidating your debt and having one payment at a lower interest rate can help you get out of financial stress and put your credit card debt behind you.