Benefits of Refinancing
Mortgage-World.com is the #1 online mortgage company specializing in refinancing home loans.
At Mortgage-World.com, you can find the benefits of refinancing your home loan that best suits your needs. Refinancing loans from Conventional, FHA, VA, and USDA require you to have income, credit, and property type. The income needs to be verified when applying for these loans. However, if you don’t meet the standard requirements you can apply for a Near-Prime loan which may involve alternative sources of documentation or no need for income verification at all.
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BENEFITS OF REFINANCING YOUR HOME LOAN
5 Benefits of Refinancing Your Mortgage
Benefits of Refinancing Your Home Loan
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Get a lower interest rate and monthly payment
You could potentially save thousands of dollars over the term of your loan when you lock in a lower interest rate. In most cases, a lower interest rate also means a lower monthly mortgage payment. These interest savings could allow you to pay off other high-interest debt (like credit cards), add to your savings account, or put more dollars toward retirement.
2. Pay off your home loan early
You may be able to reduce the term of your loan by refinancing. If you had your loan for a number of years, a reduction in interest rates can allow you to move from a 30-year mortgage to a 20-year mortgage without a significant change in your monthly mortgage payments. Because the loan is paid off in a shorter period of time, you may benefit from a reduced interest expense.
3. Lock in a fixed interest rate
Borrowers with an adjustable-rate mortgage (ARM) will often replace their loans with new ones that have a fixed interest rate. This is especially true when an interest rate adjustment period is approaching and a lower fixed rate can be obtained by refinancing your existing mortgage.
4. Obtain funds for home improvements or repairs
When you pay your mortgage every month, you build equity (the difference between the value of your home and how much you owe). As a borrower, you can do a cash-out refinance to access the equity you’ve built up. This money can be used for several purposes – finance home improvements/repairs, pay off high-interest debt, or pay large expenses like medical bills, legal expenses, and college tuition.
5. Remove private mortgage insurance
Generally, you pay private mortgage insurance (PMI) when you finance more than 80% of your home’s value (except for VA loans). Refinancing your mortgage may be an opportunity to remove this expense. This option is available to borrowers whose loan-to-value (LTV) is less than 80% because of a reduced loan amount, an increase in home value, or both.
Written by: Julia Luis, Loan Officer for Mortgage-World.com, LLC
Julia Luis covers mortgages and the housing market. Before joining Mortgage-World.com, she was a student at the University of Miami.
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