MORTGAGE REFINANCING

The main reasons for refinancing your home mortgage loan are: a) To have fixed monthly payments whereas currently you may have an adjustable rate mortgage and want fixed payments later on. b) you want a lower monthly mortgage payment, and by refinancing a newer home mortgage loan with a lower rate, you can have an adjustable rate mortgage, a fixed ARM combination loan or even an adjustable rate mortgage. c) You want to consolidate loans – if you’ve recently purchased a home with a first or second mortgage and you’re looking into refinancing your loan to combine the two mortgages into one primary loan at the current value of your place of residence. d) You want to pay of your mortgage sooner by increasing your home equity faster and paying off your loan through mortgage refinancing and an accelerated payment schedule. e) You want to refinance your loan in order to get some cash funds from your home’s equity for investments, debt consolidation, purchases or even home improvements. A misconception about mortgage refinancing is that you need to own your home for at least one year before you start to refinance; this is not true – you can have your home mortgage loan refinanced at any point in time using the home’s starter purchase price. You will still be able to change your loan program, and take cash out if you need it. Refinancing your mortgage loan will also help you pay off a 2nd mortgage loan, get rid of your PMI, or Private Mortgage Insurance, requirement, or help you take out cash despite the fact that you’ve only been living in your home for a couple of months. Another misconception is that you should only refinance your home mortgage loan if it is possible to save a minimum of 1 percent on your current interest rate. This is not true either. If you are a homeowner with a 2nd mortgage and you need to withdraw cash, or you are paying private mortgage insurance, the interest rate could be the only factor that will determine whether or not to refinance your mortgage loan.