WHEN TO REFINANCE
When to Refinance
Each homeowner is unique - and we'll
help you determine if it's the right time for
you to refinance. Effective refinancing typically
means lowering your current mortgage loan rate
by at least one percent. You might also want to
consider changing the length of your loan or receiving
cash from the equity in your house.
Benefits of Refinancing
If you want to increase cash flow, refinancing
to lower your monthly payment could help. Refinancing
could also allow you to shorten your loan term
if you qualify.
Using Home Equity
Many people borrow against the equity
in their homes and use the cash to make improvements.
Up to 90 percent of the appraised value of your
home can be used to make home improvements. The
equity you can use is based on the value of the
home and what you currently owe, subject to applicable
state laws. You can still refinance if you don't
have much equity -- up to 90 percent loan-to-value
(LTV) if you want to refinance your house for
a new rate and term. A reappraisal of your property
may be required.
Refinancing Costs
You will have closing costs associated
with refinancing your loan, including points and
processing fees. You may have the option of rolling
these costs into the loan amount to reduce your
cash out of pocket.
