Clients and friends often ask us, when is a good time to refi? Today in the All American Mortgage Learning Corner we'll take you through the initial thought process to identifying if we can assist you with your financing objective.
First ask yourself, what is your refinancing goal? What do you want to accomplish? Here are four common situations.
Shorten loan term – Doing so can save on interest paid and increase the pay down rate of the loan. This will create equity faster, building personal financial worth.
Debt Consolidation – Convert existing equity to cash so other debts can be paid off.
Cash to Renovate/Remodel – If sufficient equity exist in your home, you can access it to pay for improvements.
Get rid of mortgage insurance – If your home has gone up in value, a refinance at/under 80% of appraised value could eliminate any private mortgage insurance.
Does a refinance make sense for you? Have the following information handy when you call…
Present mortgage stamen for payment & balance info
General idea of current home value
Balances of any additional debits to be paid off