Louisville, KY
This is the very same question several people have asked me this week. For some, it just wasn't the right time. For others though, it made perfect sense and once they saw the monthly savings, they wandered why they didn't act sooner!
Interest rates are obviously at historic lows right now. It is a great time for those who are purchasing, as well as for those who wish to refinance their homes here in Louisville, KY. Refinancing can save you a lot of money. Read below and find out if it is right for you and exactly how much you can save each month.
What Is Refinancing?
Refinancing gives you the chance to replace your current mortgage with a new loan having a more favorable rate and term that you can afford to manage. The new loan is offered against the same property as the collateral and may or may not exceed the current loan balance. The new loan funds are used to pay down the current mortgage while any remaining cash can be used to your best advantage.
How a Mortgage Refinance Works
This process will vary slightly from one homeowner to the next and from state to state, based on many factors. But generally speaking, this is how refinancing works for most of us here in Louisville, KY.
Step 1 - Determine Your Home’s Value
Step 2 - Determine Your Home's Equity
Step 3 - Check Your Credit Report and Score
Step 4 - Find Out if Refinancing Makes Sense
Step 5 - Get Refinancing Quote from Lender
6 Reasons Why You Should Refinance
First of all, I should point out that I’m not telling you to refinance your mortgage loan. That’s your decision. The point is that, by the time you finish reading this article, you may find that refinancing is a bad idea for you right now. Or you might find that it makes perfect sense. Either way, you’ll come to this realization on your own.
If you're thinking "Should I refinance my house?", check out the 6 reasons as to why you may make such a decision.
You want to save more:
Your monthly payments will be reduced if you get a low rate or when your loan term is extended. Keep in mind with an extended term, your monthly savings will increase but you'll be paying more in total interest for the life of the loan.
You want to pay down your mortgage quickly:
You can shorten the length of your mortgage by reducing the loan term. Monthly payments will no doubt go up, but you will be able to save more in the overall interest payment. Moreover, you'll be debt free in a shorter time.
You need extra cash to pay off credit cards:
If you have enough home equity, you can borrow more than the current loan balance. With the extra cash, you can pay off high interest debts such as credit card balances or installment loans. You gain out of it as the interest on such debt is not deductible unlike mortgage interest.
You wish to consolidate 2 loans into one:
If there's enough equity, you can consolidate first and second mortgages and refinance into a single first mortgage. The monthly payment on the new loan is likely to be lower than the combined payments on the first loan and the second mortgage.
You want to convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM):
This allows you to lock in at a low rate. You can thus repay the loan with stable monthly payments rather than variable payments over the loan term.
You want to get rid off PMI:
If your current loan balance is below 80% of the new appraised home value, you can go for a home refinance and stop paying the PMI (Private Mortgage Insurance).
How Much Can I Save By Refinancing My Loan?
The exact type of assistance and monthly savings obviously depends on the individual and many factors.
Is refinancing right for you?
Within 24 hours I can notify you by telephone or email if refinancing is right for you. I will present the best options available. No hassle. No obligation.
If you've been hesitant because you felt uncertain about the process of refinancing, there is no need to wait any longer. I will assist you and help make this as easy as possible.
Just click here and fill out a
Free No-Obligation Mortgage Refinance Quote.
I look forward to helping you soon!
Sincerely,
Jason Thompson
Mortgage Professional
Louisville Mortgage Leader
(502) 774-0117
LouMortgageLeadr@aol.com
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