The Mortgage ABC’s: Refinances

“Do you do refinances?” is a question many clients ask. Yes I do! What is a refinance? Refinance means, literally, to “finance again.” If you finance your home with a purchase loan, you replace it when you refinance. Below are the most common reasons to refinance.

The Most Common Refinances

  • Lower the interest rate and monthly payment on the loan
  • Remove mortgage insurance
  • Lower the loan’s term in order to pay it off faster and reduce over interest
  • Consolidate debt, or take cash out for home improvements
  • Remove a borrower from the loan, such as in a divorce situation

Clients often time have the opportunity to accomplish several of these goals at once. I’ve had clients reduce their term, pay off debt, remove mortgage insurance, and lower their interest rate, all in one transaction! Contact me at any time if you’d like a free mortgage analysis of your current loan, or have general questions about a refinance!