3 Most Common Types of Refinances...
Jacob M Cohen, MBA with Trustmark Bank
? Go to guy for Your Business Banking Needs ? SBA Business Loan Specialist ? Commercial Financing Specialist ? Business Line of Credit Specialist ? Multi Family Specialist ?
Hi Guys!
I just wanted to provide some context to what's going on in the Refinance World at the moment. The country is slowly opening back up and home pending sales Surge by 44.3% in May for contracts purchasing existing single-family houses, condos, townhomes and co-ops. Refinance rates are looking good and vary depending on each individual borrowers situation (credit score and loan to value). See below a quick definition and notes on the 3 of most common refinances I have been seeing lately.
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3 Most Common Types of Refinances
- Rate/Term Refinance 30 year - a refinance where borrower pays off their mortgage w/ no additional debt acquired outside of closing cost being rolled into the loan. Borrowers looking to increase their monthly cash flows benefit from the reduction in pmt every month. I have been lowering borrower's payments on these any where from $100 a month to $350 a month. What could your family do with the monthly increase in cash flow? Save it? Pay down on other debts?
- Rate/Term Refinance 15 year - a refinance where borrower pays off their mortgage w/ no additional debt acquired outside of closing cost being rolled into the loan. Primary difference between the 15 year and the 30 year is that in most cases the 15 year yield's a higher monthly payment. If a borrower can afford the higher payment I always suggest going that route. I have been reducing 5-10 years off people's mortgage thus helping them become Debt Free Sooner!
- Cash Out Refinance - This is where we payoff the 1st mortgage and any other debts that the borrower wishes to pay. We can payoff 2nd Mortgages, Car Loans, Federal Tax Liens, Credit Card debt etc. Success Story - We recently refinanced a sweet elderly couple and reduced their monthly debt obligations by $750 by paying of a car loan and some credit card debt. They were very Happy!!!
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