{"id":12565,"date":"2010-11-22T23:30:01","date_gmt":"2010-11-22T23:30:01","guid":{"rendered":"http:\/\/template.lenderama.com\/?p=506"},"modified":"2010-11-22T23:30:01","modified_gmt":"2010-11-22T23:30:01","slug":"four-possible-reasons-to-refinance","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/four-possible-reasons-to-refinance\/","title":{"rendered":"Four Possible Reasons To Refinance"},"content":{"rendered":"

\"\"<\/p>\n

A mortgage is generally the largest debt most homeowners have to manage.\u00a0\u00a0It’s a good idea to give your personal real estate finance portfolio a check-up at least once a year.<\/p>\n

Since there are\u00a0many reasons a homeowner<\/a> may choose to refinance, we’ll take a look at the four most common reasons to refinance.<\/p>\n

1.\u00a0 Mortgage Rates Drop<\/a>:<\/strong><\/p>\n

Typically, the most common reason that homeowners refinance their mortgage is to secure a lower interest rate.\u00a0Interest rate and loan amount\u00a0determines the\u00a0total\u00a0cost\u00a0that\u00a0a borrower\u00a0will pay. The lower the interest rate, the less\u00a0the overall\u00a0cost will be. Interest is calculated on a daily basis and usually paid back to the lender\u00a0on a monthly basis.<\/p><\/blockquote>\n

2.\u00a0 Lower Payments:<\/strong><\/p>\n

Lowering a mortgage\u00a0payment can be achieved by lowering\u00a0the mortgage rate, lengthening\u00a0the loan term, combining two or more loans or removing mortgage insurance.<\/p><\/blockquote>\n

3.\u00a0 New Mortgage Program:<\/strong><\/p>\n

Refinancing\u00a0an Adjustable Rate Mortgage <\/a>(ARM)\u00a0to a new Fixed Rate Mortgage <\/a>(FRM), combining a first and second\u00a0mortgage or paying off a balloon loan are three possible reasons to explore a refinance.<\/p><\/blockquote>\n

4.\u00a0 Debt Consolidation:<\/strong><\/p>\n

If there is sufficient equity, sometimes paying off\u00a0consumer debt by combining all debts\u00a0into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget.\u00a0 However, it’s important to keep in mind the total cost of that debt by\u00a0adding it into a 30 year mortgage payment.<\/p><\/blockquote>\n

_________________<\/span><\/p>\n

Frequently Asked Refinance Questions:<\/h2>\n

Q:\u00a0 Do I have to refinance with my current mortgage company?<\/strong><\/p>\n

No, you may choose any company\u00a0to refinance your mortgage since the new loan will replace the\u00a0existing mortgage.<\/p>\n

Q:\u00a0 Is it easier to refinance with my current mortgage company?<\/strong><\/p>\n

It is possible\u00a0your current mortgage company\u00a0may require less\u00a0documentation, but this\u00a0could\u00a0add additional\u00a0cost\u00a0or a higher\u00a0interest rate. Do your homework and shop around\u00a0to make sure you’re getting the best deal.<\/p>\n

Q:\u00a0 W<\/strong>ill I automatically qualify if I’ve never made any late payments?<\/strong><\/p>\n

No, you will have to qualify for your new refinance. However, certain programs will allow for reduced documentation like\u00a0a FHA to FHA Streamline Refinance.<\/p>\n

If you find yourself with a reson to refinance please feel free to give me a call for more information<\/a>.<\/p>\n

_________________________________<\/span><\/p>\n

Related Article – Refinance Process:<\/h2>\n