Refinance Overview Summer 2021
Dan Cassel
Reliable Real Estate and Asset Based Loan Source. Solid Investment Loan options. Nationwide. Fast Track, Reliable Cash Loan Solutions for Self Employed Borrowers and Investors that many local Banks just do not offer..
When you refinance a mortgage what you’re really doing is replacing the mortgage you have now with a new mortgage loan that has new terms that better fit your financial goals.
Determining whether to refinance your mortgage is an important decision, but it doesn’t need to be overwhelming.
If you have a high-interest rate mortgage, an adjustable-rate loan, or maybe your payments are becoming unmanageable, refinancing may be able to lower your monthly payments, shorten the term of your loan or move you into a more secure loan.
Save on your monthly payments
If interest rates have declined since you closed on your current mortgage loan, your home value has risen or your timelines in your home have changed, refinancing at a lower interest rate may help decrease your monthly payments and make a lot of sense.
It can also help you reduce the total amount of interest you pay over the life of the loan. Keep in mind that your interest rate will be based on a number of factors, including your credit score.
Build equity more quickly
Equity is the difference between what your home is worth and how much money you owe on your home loan. The more equity you have the more profit you’ll make when you sell your home and the closer you are to paying off your mortgage entirely. Refinancing to a loan with a shorter term, from 30 years to 15 years for example, can help you build equity faster. Because you’ll be paying your mortgage for a shorter period of time, reducing the length of your mortgage may also result in paying less interest over the life of the loan. Keep in mind, although the total amount you’ll pay in this scenario is likely to decrease, your monthly payments will likely increase.
Find more stability
If your original loan was an adjustable rate mortgage (ARM), you may consider refinancing to a more stable fixed rate mortgage. This will make your payments more predictable in the future.
REFINANCE OPTIONS
FNMA - You have a number of options when making your decision to refinance. Different types of refinance include Traditional Refinance and Cash-Out Refinance. Fannie Mae’s various mortgage products may be able to help you finance a home renovation, allow you to pay for energy efficiency-related improvements, or offer a low-down-payment option.
NON-QM - Non-qualified mortgage's (Non-QM) Typically these are Low Doc Loans for Primary, Secondary on Investment Home Purchases or Refinances. (Cash out is fine). This is a home loan designed to help Borrowers who can't typically meet much of the strict criteria of a qualifying mortgage thru say FNMA.
For example, if you are a family of 2 with one Borrower Salaried with W2 income and another being Self Employed, you may typically may not have all the necessary documentation or Income to qualify for a traditional FNMA mortgage. In this case you might need to look at non-qualified mortgages as a solid Alternative.
The Refinance Process will typically also help you reduce the total amount of interest you pay over the life of the loan to the Banks. Keep in mind that your interest rate will be based on a number of factors, including your credit score.
For a Free Mortgage Loan Analysis now, simply click here or Phone Dan Cassel and Trinity Mortgage direct at 866-310-1112.