Mortgage refinance up to 80% of your home's value quickly and easily to pay off high-interest credit card debt that has caused your cash flow to slow to a trickle. Worried about penalties? Don't think it can make much difference? Think again. By using your home equity to consolidate your debt, you can improve monthly cash flow, have one easy payment, and be mortgage-free quicker.
Call or email us today for full details and a FAST mortgage pre-approval!
What is Mortgage Refinance?
Mortgage refinance is the process of replacing an existing mortgage with a new one, typically to obtain a better interest rate, more favorable terms, or to access equity in the property. When you refinance your mortgage, you essentially pay off your existing loan and take out a new loan that replaces it.
Refinancing a mortgage can be a good idea if interest rates have fallen since you originally took out your mortgage, or if your credit score has improved, which can help you qualify for a lower interest rate. Additionally, if you want to change the type of mortgage you have, such as going from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, refinancing can be a good way to do so.
Refinancing can also be a way to tap into the equity in your home, which is the difference between the current value of the property and the amount you still owe on your mortgage. You can use this equity to access cash, pay off debt, or make home improvements.
Types of Mortgage Refinancing
There are several types of mortgage refinancing that homeowners can consider, including:
1.Rate-and-term refinance: This is the most common type of mortgage refinance, in which the borrower replaces the existing mortgage with a new one that has a lower interest rate or more favorable terms. The primary goal of this type of refinancing is to save money on monthly payments and overall interest costs.
2. Cash-out refinance: With a cash-out refinance, the borrower takes out a new mortgage that is greater than the amount owed on the existing mortgage. The difference between the two is paid out in cash to the borrower. This can be a good option if the homeowner needs to access cash for home improvements, debt consolidation, or other expenses.
3. Streamline refinance: A streamline refinance is a simplified version of a rate-and-term refinance, designed for borrowers with existing government-backed mortgages. The process typically involves less paperwork and fewer underwriting requirements than a traditional refinance.
4. Adjustable-rate mortgage (ARM) :to fixed-rate mortgage refinance: If a homeowner has an adjustable-rate mortgage with an interest rate that is set to increase soon, they may choose to refinance into a fixed-rate mortgage to lock in a lower rate and avoid future rate increases.
5.Hybrid ARM to fixed-rate mortgage refinance: A hybrid ARM combines a fixed rate for a certain period of time, followed by an adjustable rate. If the fixed rate period is about to end and the adjustable rate is set to increase significantly, the borrower may choose to refinance into a fixed-rate mortgage to avoid future rate increases.
Benefits of Mortgage Refinance
There are several potential benefits to refinancing a mortgage, including:
Lower interest rates: One of the primary benefits of mortgage refinance is the potential to obtain a lower interest rate, which can lead to significant savings over the life of the loan. Lowering the interest rate can also lead to lower monthly payments, which can make the mortgage more affordable.
Access to cash: Refinancing a mortgage can provide homeowners with access to cash they may need for home improvements, debt consolidation, or other expenses. This can be especially helpful for homeowners who have built up equity in their homes.
Shortening the loan term: Refinancing a mortgage can allow homeowners to shorten the loan term, which can help them build equity in their homes more quickly and pay off the loan faster.
Switching from an adjustable-rate to a fixed-rate mortgage: If a homeowner has an adjustable-rate mortgage and is concerned about future rate increases, refinancing to a fixed-rate mortgage can provide stability and predictability in their monthly payments.
Consolidating debt: By refinancing a mortgage and accessing cash, homeowners may be able to consolidate high-interest debt, such as credit cards or personal loans, into a lower-interest mortgage. This can save money on interest payments over time.
Removing mortgage insurance: If a homeowner has built up enough equity in their home, refinancing can help them remove mortgage insurance, which can lead to significant savings on monthly payments.
How to apply for mortgage refinance in Burlington
If you're looking to apply for mortgage refinance in Burlington, here are the general steps to follow:
Review your current mortgage: Before applying for a mortgage refinance, review your current mortgage and understand the terms and interest rate. This will help you determine if a refinance will save you money in the long run.
Shop around for lenders: Research different lenders and compare their rates and terms. You can use online comparison tools or work with a mortgage broker who can provide options from multiple lenders.
Gather documentation: Lenders will require documentation to process your refinance application, including pay stubs, tax returns, bank statements, and proof of insurance. Gather these documents in advance to speed up the application process.
Apply for the refinance: Once you've selected a lender, complete the application process. You'll need to provide information about your income, assets, and debt, and authorize a credit check.
Wait for the lender's decision: The lender will review your application and determine if you qualify for the refinance. If approved, they'll provide you with a loan estimate that outlines the new terms and costs.
Close on the new loan: If you're satisfied with the loan estimate, you'll need to sign closing documents and pay any required fees. Once the loan funds, the old mortgage will be paid off and the new mortgage will begin.
If you are looking to refinance your mortgage, contact Jason Woods today! We are specialized in mortgage and knowledgeable on current trends. We have access to different lenders, banks, trust companies, investors and financial institutions.
We will provide you with the best suited option as per your current financial situation. Jason Woods ensures you get the best possible rates and terms on your mortgage. Get in touch with us today!