Fax 410 374 8803
Toll-Free 877 878 0100
Mortgage Refinance Options
Your refinancing goals will determine which type of mortgage refinance is right for you
You’ve probably heard the phrase, “your home is an investment.” It truly is and for many homeowners it can be a source of extra cash.
That’s because it’s an asset. And the more equity you’ve invested as real estate values rise, the greater the value of your asset that you can borrow against later.
But before you do, you should have a goal in mind.
Do you want to consolidate your high-interest credit card payments into one lower monthly payment? Do you plan to reduce your monthly mortgage payment? Do you want to reduce the term by 10 or 15 years? Do you need cash to remodel your home? Pay for college tuition?
Your answers are important before you begin to refinance so you and your personal advisor can find the option that best meets your needs.
There are 2 basic types of refinancing options:
1. Rate and term refinancing: In this scenario, you simply want to lower your interest rate so you can lower your monthly payment or shorten the term of the loan so you’re paying less over the life of the loan.
2. Cash-out refinancing: This is where you turn your equity into cash to pay off high-interest credit card debt or get cash to do whatever you want. The mortgage is refinanced so the cash is applied to the principal. If the rate is lowered, the mortgage payment is also reduced saving you more money.
