Refinance Your Mortgage FAQs
What are the benefits of refinancing?
You may want to consider refinancing if you are interested in paying off high-interest-rate debt, shortening the length of your repayment term for your mortgage, or lowering your monthly mortgage payment.
When does it make sense to refinance?
Generally speaking, one or more of the following conditions needs to be present before you should consider refinancing your mortgage:
- Mortgage interest rates are falling.
- Your home has significantly appreciated in market value.
- You've been making payments on your original 30-year mortgage for less than ten years.
Can I refinance to take cash out of my house?
Yes. Lenders offer a variety of options that allow you to tap into your home's equity and take cash out. Contact us for the best cash-out refinancing option for you.
How can I consolidate debt when refinancing my mortgage?
Cash-out refinancing can help homeowners who want to consolidate high-interest, nondeductible debt. Because your mortgage interest rate is likely to be lower than rates on credit cards or other types of bank loans, consolidating debt may reduce your overall monthly debt payments. In addition, your mortgage interest may be tax-deductible, while your credit card interest is not. The amount you save on loan consolidation may vary by loan. Since a home loan may have a longer term than some of the bills you may be consolidating, you may not realize savings over the entire term of your new loan. In addition, your loan may require you to incur premiums for hazard and, if applicable, flood insurance and mortgage insurance which would affect your monthly payment reduction. Federally Guaranteed Student Loans should not be consolidated because you will lose important federal benefits.
Do I need to have my house appraised in order to refinance?
Yes, in most cases. However, depending on the circumstances, an appraisal may not be required.