TO REFINANCE OR NOT??
Maybe you have been wondering if refinancing your current home loan is a good decision or even possible. With the interest rates still at an all-time low, refinancing your current loan(s) may be an option for you. Talking with experts in the mortgage field and around the Lake of the Ozarks, is always the best first step in the refinance process. And MHQ Mortgage Headquarters is here to help guide and advise you in the best interest of you, your family and lifestyle.
The huge number of refinance options available to borrowers is truly breathtaking. We can guide you to select the refinance program that can fit your financial situation the best. Contact us at (573) 302-9990 to get started. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you want to get a loan higher than the balance remaining of your current mortgage. In this case, you You'll want to get a loan for more than the remaining balance of your existing mortgage loan in this case. You may not increase your mortgage payment, however, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some of the equity in your home (cash out) to put toward other debt. If you have any debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? If this is your wish, the refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your payments will generally be bigger than you have been paying. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, reach out to one of our Lake of the Ozarks mortgage loan experts at MHQ Mortgage for help.
IS REFINANCING WORTH THE COST
Ever heard the old rule of thumb that states you should only consider refinancing if your new interest rate will be at least two points under your existing one? That could have been accurate years ago, but since refinancing has been costing less recently, it is a good time to consider a new loan! A refinance is often worth its cost several times over, because of the advantages that it brings, as well as a lower interest rate.
Benefits
When you refinance, you could be able to reduce the interest rate and monthly payment amount, sometimes by a lot. You may also be able to "cash out" some of your equity, which you are able use to take care of higher interest debt, make home improvements, or take a vacation. You might be able to refinance to a shorter-term mortgage loan, enabling you to add to your equity quicker.
Fees and Expenses
As you probably expect, you will have some fees and expenses during the the refinance process. You'll have to pay the same types of expenses and fees as you did with your existing home loan. Among these may be settlement costs, an appraisal, lender's title insurance, underwriting fees, and so on.
Doing the Math
Paying points can help you attain a lower interest rate. Your savings over the life of the loan may be significant if you have paid up front about three percent of the new loan balance. You may have heard that these points may be tax deductible, but since tax regulations can be difficult to keep up with, please consult your tax professional before making any decisions based on this.
Speaking of taxes, if your interest rate is reduced, it follows that you'll also be lowering the interest amount that you can deduct on your federal income taxes. This is another cost that some borrowers take into account.
In the end, for most borrowers the total of up-front costs to refinance will be made up very quickly in monthly savings. MHQ Mortgage Headquarters, a mortgage leader in the Lake area, can help you explore your options, considering all the effects a refinance may have on your total loan, current lifestyle needs and what your future may hold.
Maybe you have been wondering if refinancing your current home loan is a good decision or even possible. With the interest rates still at an all-time low, refinancing your current loan(s) may be an option for you. Talking with experts in the mortgage field and around the Lake of the Ozarks, is always the best first step in the refinance process. And MHQ Mortgage Headquarters is here to help guide and advise you in the best interest of you, your family and lifestyle.
The huge number of refinance options available to borrowers is truly breathtaking. We can guide you to select the refinance program that can fit your financial situation the best. Contact us at (573) 302-9990 to get started. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you want to get a loan higher than the balance remaining of your current mortgage. In this case, you You'll want to get a loan for more than the remaining balance of your existing mortgage loan in this case. You may not increase your mortgage payment, however, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some of the equity in your home (cash out) to put toward other debt. If you have any debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? If this is your wish, the refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your payments will generally be bigger than you have been paying. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, reach out to one of our Lake of the Ozarks mortgage loan experts at MHQ Mortgage for help.
IS REFINANCING WORTH THE COST
Ever heard the old rule of thumb that states you should only consider refinancing if your new interest rate will be at least two points under your existing one? That could have been accurate years ago, but since refinancing has been costing less recently, it is a good time to consider a new loan! A refinance is often worth its cost several times over, because of the advantages that it brings, as well as a lower interest rate.
Benefits
When you refinance, you could be able to reduce the interest rate and monthly payment amount, sometimes by a lot. You may also be able to "cash out" some of your equity, which you are able use to take care of higher interest debt, make home improvements, or take a vacation. You might be able to refinance to a shorter-term mortgage loan, enabling you to add to your equity quicker.
Fees and Expenses
As you probably expect, you will have some fees and expenses during the the refinance process. You'll have to pay the same types of expenses and fees as you did with your existing home loan. Among these may be settlement costs, an appraisal, lender's title insurance, underwriting fees, and so on.
Doing the Math
Paying points can help you attain a lower interest rate. Your savings over the life of the loan may be significant if you have paid up front about three percent of the new loan balance. You may have heard that these points may be tax deductible, but since tax regulations can be difficult to keep up with, please consult your tax professional before making any decisions based on this.
Speaking of taxes, if your interest rate is reduced, it follows that you'll also be lowering the interest amount that you can deduct on your federal income taxes. This is another cost that some borrowers take into account.
In the end, for most borrowers the total of up-front costs to refinance will be made up very quickly in monthly savings. MHQ Mortgage Headquarters, a mortgage leader in the Lake area, can help you explore your options, considering all the effects a refinance may have on your total loan, current lifestyle needs and what your future may hold.
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