Mortgage refinances are done for a variety of reasons.  Every loan and home are different, and have different needs.  Interest rate is often the reason for a refinance, where homeowners want to lower their interest rate and save money every month on their mortgage payment.  However, there are other reasons to refinance your mortgage.

  • Cut off your ARM – people with an Adjustable Rate Mortgage want to get rid of their fluctuating rates and pick up a lower rate that they can keep when the market changes.  You can plan better for your future when you know that you are paying the same thing every month, and not gambling on interest rates.
  • A Cash-Out Refinance – Cash-Out Refinances, or Debt Consolidation Loans, are a Loan type where you can take the equity in your home to do a variety of different tasks.  If you have high-interest debt, you can get rid of the credit cards and roll those payments under your lower income mortgage.  You can also use your equity to take some cash out, to do home improvements and increase the value of your home.  This is a great way to use your equity, making the home more to your liking and more valuable.
  • To shorten your loan – If you have a 30-Year Fixed, you can use a mortgage refinance to shorten the term of your mortgage with a Rate and Term Refinance, shortening the commitment and saving yourself interest payments on the back end while paying your home off faster.  A Rate and Term can shorten your loan without raising your payment if you are lowering the rate at the same time!
  • Get rid of PMI – Homeowners with FHA Loans know all about Private Mortgage Insurance.  You pay an insurance premium to help guarantee your mortgage for the bank, since you have put down less money.  While this lets you buy a home with less down payment, you end up paying money that doesn’t go towards your home ownership.  When you have 20% equity in your home, or the money to get there saved up, you can refinance to a Conventional Loan and cut the PMI off of your payment entirely.

If you can lower your interest rate and save money, it’s a good idea.  You will have more money to spend, give away less money towards interest payments, and own your house for less money at the end of the loan.  Or you can get rid of credit cards, build a pool, send the kids to college, or spend your equity how you want.  Refinancing when rates are this low should be a no-brainer.

Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656.  You can always apply online at for your VA Loan, and for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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