close popup Privacy policy
Home > Refinance

Refinance

refinance

Life happens, interest rates change and situations arise which may cause a borrower to find that they might want to refinance their mortgage.

While the subjective reasoning behind refinancing will be as unique as each borrower, we have provided a few example situations that could potentially influence the decision.

  • Fluctuations in the market cause the interest rates to spike.
  • A lending institution might run a promotional rate for homebuyers looking to refinance.
  • A homebuyer may want to unlock some of their accrued equity in their home to finance a child’s education or a home improvement project.
  • Perhaps the qualified borrower might want to migrate from a fixed-rate to an adjustable-rate mortgage or vice versa.
  • The homeowner’s life situation may have changed making refinancing a viable option.

The purpose of refinancing is to allow a borrower to obtain a more beneficial interest term and rate. It can also be to avoid balloon payments or to cash out a portion of a home's equity. A better interest rate may look tantalizing, but it is in the borrower's best interest to consider that there are fees involved in refinancing and that interest rate may not end up showing bona fide savings until much later.

The well-informed borrower considers many factors. For example, how long they've had the loan and where they are on repayment. How long they intend to remain at that home. Selling a home shortly after they refinance may keep the borrower from seeing the positive effects of refinancing.

It is important to remember that sometimes the cost of refinancing can offset savings under new loan terms. Pay attention to such things as loan origination fees and mortgage insurance. Some aspects of refinancing may be disadvantageous and your refinancing benefits depend on your individual financial goals.

The informational content referenced below goes just a few of the options that may be available to borrowers.

Related Information

Why Refinance - It is not just that one attractive interest rate number spouted by the fast-talking advertisement that affects the final monthly bill. Could it be reducing your interest rate? Obtaining money for larger purchases or to reduce credit card debt?

It’s about timing! - Just like learning how to juggle, or dance the tango, refinancing a mortgage may turn out to be all in the timing.

What’s my LTV? - The homeowner’s Loan-to-Value (LTV) percentage is simple to understand the equation that gives a general indication of how much you owe on your mortgage compared to your home’s current market value.

mail print
 
Find Lenders

Try our Mortgage and Refinance calculators See your options now

Most popular

Home affordibility calculator is ready to use!

See your options now

 

The operator of this website is not a lender or loan provider, and is not an agent, representative or broker. This website does not constitute an offer or solicitation to lend and the information submitted by you is not an application for mortgage financing. The information submitted by you will be shared with up to five (5) participating lenders. The operator does not guarantee you will be connected with participating lenders, receive conditional loan offers or enter into a loan agreement. The operator does not endorse, recommend or guarantee the price, product, availability, rates or fees of participating lenders. Participating lenders may perform credit checks with credit reporting bureaus or obtain consumer reports through alternative providers. Participating lenders may require you to pay a fee to cover the costs of any such inquiry. Participating lenders may not offer all loan products and loan products may not be available in all states. The states serviced by this website may change from time to time, without notice. The operator is not affiliated with the government and this service is not endorsed or sponsored by the government or any participating lender. This service is void where prohibited. This website is not an independent consumer protection update and the content provided hereon is for informational purposes only. Please see the Privacy Policy, Terms of Use and Material Disclosures for more information. Consult with your independent legal and financial advisor before acting on any information provided on this website.

© 2017 eMortgageRates.com. All rights reserved.