Why Refinance?

Many Reasons to Refinance in Today's Market

Many borrowers ponder whether to refinance in today’s market.  Many good reasons to refinance a home loan exist, including:

Lower Interest Rate

Obtaining a lower interest rate is the goal for many seeking to refinance. When interest rates are low, refinancing is common as a way to lower monthly payments.  

Build Equity Faster

Faster equity may be a high priority for some. Going from a 30-year to a 15-year mortgage usually results in a higher monthly payment, but the loan could be paid off in half the time – saving borrowers a small fortune in interest.  Striking while interest rates are low can help make the adjustment to a shorter term mortgage more affordable.

Cash From Equity

Those with home equity might need to cash in to pay important expenses.  Using the VA cash-out refinance program is one way to help borrowers get money out of their real estate investments. 

Eliminate Private Mortgage Insurance (PMI)

If a borrower hasn’t accrued much equity in the home, and he or she doesn’t have a VA-backed mortgage, then the monthly payment likely includes private mortgage insurance (PMI).  Going from a conventional or FHA loan to a VA mortgage can eliminate PMI premiums.

Streamline for Quick Refinance

Borrowers with existing VA loans may consider the VA Interest Rate Reduction Refinancing (IRRRL) or Streamline program.  VA Streamline refinance loans enable VA borrowers to get lower mortgage rates and payments with little or no income and credit re-qualifying. The VA streamline refinance transaction will result in lower interest rates and payments with fewer costs and a streamlined process. 

Convert from ARM to Fixed Interest Rate

Another common reason to use refinance is to get out of an adjustable rate mortgage (ARM) and into a fixed rate mortgage. Eliminating the risk of rising interest rates that typically accompany ARMs is a sound reason to refinance into a fixed rate mortgage. 

To find out if a mortgage refinance is right for you, call 888-589-1665 with no obligation or click on the form to the right to submit your information.