Save Big with rate & term refinance…!
Discover how Rate and Term Refinancing can lower payments, shorten loan terms, and enhance financial stability. Contact us to explore the benefits today.
Benefits of rate & term refinancing
Lower Interest Rates
Switch Loan Types
Short Term Loan
Considerations for rate & term refinancing
Loan-to-value ratio (LTV)
A higher LTV ratio may result in a higher interest rate or even disqualify you from refinancing. Aim for an LTV ratio of 80% or lower to get the best rates and avoid PMI.
Keep in mind that refinancing involves closing costs, which can range from 2% to 6% of the loan amount. Calculate the break-even point to ensure the refinancing benefits outweigh the costs.
Extending loan term
Be cautious about refinancing into a longer loan term, as this could increase the overall interest you pay, even if your monthly payments decrease.
Credit score impact
Applying for a new loan can have a temporary impact on your credit score, so consider your other financial goals before refinancing.
Speak with our mortgage professional to determine if rate & term Refinancing is the right option for your unique financial situation.
Rate & Term Refinancing can be an effective tool for homeowners seeking to lower their interest rates, shorten their loan terms, or switch loan types.
However, it's essential to evaluate the closing costs, potential credit score impact, and LTV ratio before by one of ours loan specialist before making a decision.
Speak with our mortgage professional to determine if Rate & Term Refinancing is the right option for your unique financial situation.
Frequently asked questions (FAQ)
Clear answers to common mortgage and homeownership questions in our concise FAQs
What is rate & term refinancing?
Rate and term refinancing is a type of mortgage refinancing that allows you to change the interest rate or term of your existing loan without taking out a new loan. This can help you lower your monthly payments and potentially save money over the life of your loan.
Yes, you can refinance your mortgage multiple times. However, it’s important to carefully consider the costs and benefits of refinancing each time. Each refinancing can involve closing costs, fees, and potentially a new appraisal, which can add up quickly. You’ll want to make sure that the potential savings from each refinancing outweigh the costs in the long run. Additionally, too many refinancing can negatively impact your credit score and make it more difficult to qualify for loans in the future.
To qualify for rate and term refinancing, you will need to have a good credit score, a stable income, and equity in your home. You will also need to have a good payment history on your existing mortgage.
The rate and term refinancing process can take anywhere from a few weeks to a few months, depending on the lender and the complexity of your mortgage. It’s important to work with a reputable lender who can guide you through the process and help you understand your options.
Some of the benefits of rate and term refinancing include lower monthly payments, potentially lower interest rates, and the ability to pay off your mortgage sooner.