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Yes - we know the mortgage market is difficult at the moment, but some Mortgage Brokers do not help themselves with their lack of knowledge and lack of commitment to acquire it. Our clients saw a property they wanted priced at £139,950, and spoke to the Estate Agent about it. The Estate Agent referred them to the in house Mortgage Broker. The result - the Broker told them that...

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Mortgages USA
Mortgage Refinancing

Mortgage Refinancing

If you are worried about losing your house to foreclosure as you are unable to make your monthly home loan payments, you can consider mortgage refinancing.

By refinancing, you replace your home loan with a new loan offering low interest rates and favorable terms, using the same property as collateral.

When should you refinance your home loan?

Before going for refinance, you must compare the interest on the new loan with your existing home loan to determine how much you will save. You should also find out how long you must stay in the house to benefit by obtaining a refinance loan. Generally, refinancing makes sense when you can obtain the new loan at an interest rate that is at least 2 % lower than that of your existing home loan.

How can you refinance your home loan?

The most common types of loans used for mortgage refinancing are fixed-rate loans and adjustable-rate loans. You can also refinance your home loan with the following options:

Streamline Refinancing

If you have a FHA loan or VA loan, you can qualify for a FHA streamline refinance or VA streamline refinance respectively. You can obtain streamline refinance loans faster as these require less documentation than a typical loan.

Cash-out refinancing

You can obtain a refinance loan larger than the outstanding balance on your existing home loan. This will not only help you pay off your existing mortgage but also use the additional cash to satisfy other needs.

What are the advantages of refinancing?

Mortgage refinancing can help you tackle your home loan debt by offering you the following benefits:

Lower monthly payments

By replacing your home loan with a loan of lower interest rate, you can reduce your monthly payments.

Pay off your home loan faster

You can switch to a shorter term of home loan by refinancing and pay off your mortgage debt faster.

Get rid of PMI

When your equity on asset becomes more than 20%, you can refinance to eliminate your private mortgage insurance (PMI).

Repay other debts

By cash-out refinancing, you can also pay off your other debts.

If you have more than one mortgage, you can also replace them by obtaining a large refinance loan. Whatever may be the purpose of mortgage refinancing, you must shop around to compare the terms and conditions that different lenders offer, and choose the type that suits you the best.