Here are the top six reasons people refinance their home loan(s):
1) Rate Reduction – Rates don’t have to move much for a refinance to make sense. We simply need to determine the costs and benefits. The benefits may outweigh the costs…even with a rate drop that as is little as .25%.
2) Removal of Private Mortgage Insurance (PMI) – Some loans require PMI and while most allow the removal of PMI without refinancing, you may be able to get rid of PMI sooner by refinancing. FHA loans originated after June of 2013 do not allow the removal of PMI without refinancing the loan completely.
3) Consolidation – Do you have a 2nd mortgage/HELOC, credit card debt, car loans, student loans, or even mortgages on other properties that you would like to consolidate? If so, a consolidation refinance may make sense.
4) Cash-Out – Are you considering home improvements, starting a new business, or another project/investment in the near future? If so, refinancing and extracting some of your home equity may be a good option to consider.
5) Life Events – Whether it’s marriage, or divorce, college or a career change, homeowners often need to make a change in their mortgage which usually results in a refinance.
6) Change in loan term – Homeowners often find that their financial plans change over the years and in many cases that calls for a refinance. We offer countless loan terms. Whether you’re looking for an adjustable rate loan, an interest only loan, a 15 year fixed, or another program, I can assure you that the options are almost endless.
Information provided by Kory Kavanewsky of CMG Mortgage, NMLS #284503