Refinancing to a lower interest rate can lower your monthly payments and save you thousands of dollars over the term of your mortgage. Convert your adjustable rate mortgage to a fixed rate mortgage, refinance your balloon payment, or shorten your 30 year term to a 15 year term.
The process of refinancing your existing mortgage allows you to exchange your current mortgage for a new one. During this exchange, your lender pays the balance of the old loan and then you can begin to make payments on the new loan.
There are several benefits to refinancing your mortgage. The most common reason is to get a lower interest rate. You may also want to refinance to consolidate debt.
When you refinance your mortgage, you can choose from all the same option as when getting a new mortgage. Below are the most common types of mortgages:
Lenders review your credit as a means to paint a picture on how well you have handled your past finances and use this information to predict your future financial risk. Having a higher credit score means less risk for lenders, which can mean lower down payment requirements for your loan.
While every loan is different, refinancing is quicker than a new purchase as you are already established in your home. Some factors can affect the timeline, such as types of documentation required and the terms of your loan.
Mark Klein- 132598
NW Mortgage- 128113
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