Last Updated on May 18th, 2022. Original: October 6th, 2015
Whether you’re looking to lower your monthly mortgage payment, switch to a lower fixed rate, reduce your loan term, or even get cash out for various purposes, we have the mortgage refinance information you need. Learn more about The Process.
If you are experiencing payment difficulties or are just not sure if you are able to refinance due to the drop in property values, let’s work together to check your options in order to help keep you in your home.
We have the programs currently available in the market for all loan sizes.
The existing mortgage balance is paid off by taking out a new loan out. The purpose is to get either a lower rate, switch from an adjustable to fixed rate, or reduce the term to payoff the loan. Most of the time, closing costs can be included in the new loan so that there is no upfront, out-of-pocket costs.
This allows homeowners to utilize the equity in their home to achieve any number of objectives. A variety of loan options may be chosen based on the homeowner’s overall financial goals and long term plans for the subject property.
In limited cases, this option is possible. It is the fastest and most convenient way to improve your mortgage payments.
This one component of the Obama administration’s broad national plan aimed at helping homeowners to restructure or refinance their mortgage loans to prevent foreclosures. The refinance portion enables eligible homeowners to take advantage of today’s low interest rates — even if the outstanding balance of the mortgage is greater than the value of the home. It is designed to help you refinance through flexible eligibility criteria if your mortgage loan is held or guaranteed by Fannie Mae or Freddie Mac.
In order to be eligible for the Home Affordable Refinance Program, you must be current on your mortgage payments. This program can work well for homeowners who have been unable to refinance their mortgage because their home’s value has declined, and they want to refinance their current adjustable-rate mortgage (ARM), interest-only or balloon mortgage loan into a more stable fixed-rate mortgage with fully amortized monthly payments.
There are a large variety of loan types. The key is to find out which one “fits” you and your goals best. Our loan professionals are here to assist you in figuring out which program best fits your individual situation.
Fixed Rate loans provide protection against rising interest rates because the note rate remains unchanged for the total term of the loan. This is an excellent option for someone who intends to keep the property for many years.
Adjustable Rate loans generally offer initial rates that are lower than the fixed rate home loans available in the market at the same time. Since there are many variations of ARMs, it is a flexible, often attractive loan for homeowners who are planning to keep the property for a short term. However, since there are ARMs with initial rates that can stay fixed from 1 to 10 years, this can also be a good, lower interest option for those who are not sure how long they intend to keep the property. Once the initial rate converts to an adjustable rate, the extent of risk or benefit depends on the other terms of the note, such as the margin , index and rate cap . Since there are many possible ARM configurations, you should consult one of our loan professionals to look at the impact of the details of each available program as it pertains to your situation.
Fully Amortized loans have equal periodic payments that result in an outstanding balance of zero at maturity. Each loan payment is part interest and part principal. Loans can be fully amortized at many various length terms, typically 10, 15, 20 and 30 years.
Interest only loans can be structured in many different ways. They can be interest only for a set number of years and then have a balloon payment where you have to pay off the note, or they can convert to an amortized loan after an initial interest-only period. This does provide a temporary reduction in payments, which can be an attractive solution for borrower’s who are not concerned with short-term equity buildup from loan amortization or for those who know that they will be in a better position to pay a higher loan amount at the end of the interest only period. Some people may simply use the interest only payment if they have an unexpected cash flow change. Otherwise they make additional principal payments beyond the interest only required payment amount.