Refinancing
is often used to lower your interest rate. If
rates have dropped since you last financed your
home, you may want to consider refinancing. Other
common reasons to refinance include paying off
a balloon payment, converting an adjustable rate
loan to a fixed rate loan or to extract cash equity
in your home (cash out). A few reasons for cashing
out include: home improvement, an education fund,
and consolidating debt.
Another way to convert equity in your home to
cash is a “home equity” loan. A “home
equity” loan is an alternative to refinancing
if your home loan has a very low rate compared
to current interest rates or if you have a prepayment
penalty on your loan.
In
order to refinance you will need a current appraisal,
analysis and in many cases verification of your
income and assets, as well as most of the same
paperwork required when you originally financed
your home. Adequate property insurance and new
title insurance is necessary. |
| Benefits: |
- Reduce
Your Interest Rate
- Cash
Out Equity for Home Improvements
- Consolidate
Debt
- Lower
Monthly Payments
|
To
Refinance You'll Need: |
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Equal Housing Opportunity