HOME REFINANCE
The mortgage refinance process is where a homeowner replaces his current mortgage with a new one, possibly to get a better interest rate or lower monthly payments. Mortgage refinance is one of the major decisions that an individual might have to take. The intention of doing this home refinance is to save your hard-earned money by either lowering the interest rate or changing the tenure of your mortgage loan. If you are paying a high rate or an adjustable rate, this is the right time to refinance and save money. Some homeowners may also refinance from 15 years to 30 years with the intent to pay off the debt quickly.
TYPES OF MORTGAGE REFINANCE
When it comes to Mortgage refinance, there are multiple options that a borrower can choose from. The first option is to choose the right tenure. Our preferred mortgage lenders provide tenure choices from 5, 10,15,20,25, and 30-year mortgage loans. Apart from the tenure, the borrowers have options to choose from various loan programs. Conventional and FHA are some of the most common mortgage refinance programs available for borrowers.
MORTGAGE REFINANCE BENEFITS
A rate and term mortgage refinance is done to acquire a lower interest rate or to change the tenure of the loan. The biggest benefit of refinancing your mortgage loan to get a lower interest rate is saving money. Lowering your loan term may also benefit you by making sure that you pay off your mortgage loan faster. Some borrowers might also choose to buy points to lower their mortgage refinance rates. A lower interest rate implies lower monthly payments, which means overall you will pay less for the tenure of the loan. The biggest benefit can be derived when the market rates are at their lowest. This is the time when most homeowners intent to refinance to make sure they get the maximum benefit of the lowest interest rates.
REASONS FOR RATE AND TERM MORTGAGE REFINANCE
The most common reason for rate and term mortgage refinance is to lower the interest rate or change the tenure of the loan. However, there could be other reasons why an individual may go for a rate and term mortgage refinance. A person may refinance if he wants to change a program to remove mortgage insurance. A borrower may refinance to add or remove someone from a mortgage or change from an adjustable-rate mortgage to a fixed one.
WHEN TO GET A MORTGAGE REFINANCE
When it comes to mortgage refinance, it may be a little complicated with closing costs attached to it. The closing costs are usually between 1-3% of the loan amount. However, you need to do the math and understand your break-even point. Once you have determined your break-even point, you need to see if you are staying in the house for that much time to ensure you recoup the closing costs and if the mortgage refinance is worth it.
You can also use mortgage calculators to know if you are going to benefit from a mortgage refinance and analyze how much you can save if you refinance right now. All you would need is some basic information on your current mortgage and your approximate monthly savings on your mortgage if you refinance.
WHY USE COMPARE CLOSING LLC FOR YOUR MORTGAGE REFINANCE
When you are planning to refinance your mortgage, you would be looking to shop around to get the best out of the market. If you choose to work with Compare Closing LLC, we will do your bidding for you and fetch the best interest rates with the optimized closing costs for your mortgage refinance. Compare Closing LLC lets the lenders compete for your business, so the borrower can get lower closing costs and better rates, just because we will be fighting on your behalf to get the best options available for you. Since we are affiliated with the best lenders and brokers, our clients would get more options to choose from. The best benefit of getting a mortgage refinance with us is that you get options that are specifically designed to best suit your needs.
