Right now, rates are the lowest they’ve been in more than a year. With the upcoming spring market, rates are expected to rise fast and stay high. Pando Mortgage is offering Free Refinancing Evaluations.
Three Main Reasons to take advantage of a Home Mortgage Refinance:
1. Want to pay off debt?
A cash-out refinance replaces your existing mortgage with a new home loan for more than you owe on your house. The difference goes to you in cash and you can spend it on home improvements, debt consolidation or other financial needs. You must have equity built up in your house to use a cash-out refinance.
Traditional refinancing, in contrast, replaces your existing mortgage with a new one for the same balance. Here’s how a cash-out refinance works: Homes Value Limits cash-out amounts to 80% to 90% of your home’s equity.
In other words, you can’t pull out 100% of your home’s equity these days. If your home is valued at $200,000 and your mortgage balance is $100,000, you have $100,000 of equity in your home. Let’s say you want to spend $50,000 on renovations. You can refinance your loan for $150,000, and receive $50,000 in cash at closing.
2. Lowering Your Interest Rate
One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb was that it was worth the money to refinance if you could reduce your interest rate. Lowering your interest rate would in return lower your monthly payment.
3. Shorter Term Mortgage Refinance:
If you want to reduce the amount of interest you will pay during the life of your mortgage, maybe it is time to investigate the benefits that come from refinancing to a shorter-term home loan. True, you will have to make a more substantial monthly mortgage payment. It is also true that you will have to review your household budget to determine if that mortgage payment will fit. However, if it does, you stand to save potentially tens of thousands of dollars in mortgage interest.
With a 15-minute phone call, we can help you determine if refinancing makes sense for you. This is a window of opportunity that you will not want to miss. Whether you refinance to get lower monthly payments or to get cash out of your home, now is the time to explore this option.
Call Pando Mortgage for more information.