Should we refinance? Is it worth it? What does our family need to think about?
Refinancing can accomplish many things. If rates have dropped, you can drop your rate and lower your payment. If your home has gone up in value, you can tap some of the equity for whatever purpose you wish, or you can drop your mortgage insurance.
We offer "flex term" refinances, wherein rather than resetting your mortgage back to year 1 of 30, we can start you off at year 3 or 7 and keep you on track.
Cash out refinances are something we do a fair amount of. One common thing some of our clients will do with these funds is use them for the down payment on a rental property.
Dropping mortgage insurance is another common motive, for example if you put less than 20% down or took out an FHA loan. Even if you don't have 20% equity, mortgage insurance is reduced if you have more equity than what you put down when you purchased the home. Read more.
One thing to keep in mind is that it's important that the property is up to minimum financing standards. These standards aren't unrealistic, but you can read about them here.
We have a debt consolidation calculator here that will help you figure out how much you could improve your household cashflow by. Wholesale mortgage rates (unavailable if you call the bank directly) are generally lower than consumer debt interest rates!
To find out where you fall and what does and doesn't make sense, click here to reach out for a FREE no obligation consultation with no e-mail verification required! In addition, for that consultation, no credit pull is required.