What does ‘Refinancing’ Mean?
You’ve bought a home but that’s not the end of your homeownership journey. Your home can be the biggest investment of your life. As an investment, it’s important that you do your due diligence to ensure that you’re maximizing on it. Refinancing your home loan can help you capitalize on your investment.
Refinancing simply means that you’re redoing the financing of your home purchase. You essentially take your existing mortgage and replace it with a new loan that usually has more favorable terms. Your new loan could have a better interest rate or could eliminate the PMI. These and other benefits can help you lower your monthly payment. You’re also eligible to refinance your home if the value has risen or if you’ve paid down a large portion of it. This would allow you to take out a smaller loan and capitalize on the equity of your home.
Why Refinance Now?
Mortgage rates are nearing historic lows again. Recent global events paired with the trade war with China and uncertainty with global economic outlooks have driven a flight to safety causing interest rates to drop to their lowest levels in almost 24 months. Interest rates are significantly lower than they were 6-9 months ago.” If you were to have purchased and financed $400,000 6 months ago, You can now save more than $100 per month. ” says Joe DiBlase at Cross Country Mortgage. As a seasoned mortgage professional with over 20 years of experience, he can address your specific needs and help you save today.
It’s important to know that refinancing your home isn’t a free service. It comes along with its own ‘closing’ fees like origination fees, an appraisal, title insurance, taxes, and other costs. Make sure to shop around for the best home refinance rates and terms. Refinancing makes sense if it puts your finances on a stronger footing, so weigh your decision carefully.