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Refinance Your Home Loan

Provided the timing is right for your circumstances, refinancing your home loan can be a great way to lower your interest rate, reduce your monthly payment, or consolidate debt. However, a drop in interest rates doesn’t necessarily mean you should refinance.

To determine if a refinance makes sense for you, we start with an in-depth conversation about your goals, then present several options. We’ll help you weigh the pros and cons to reach a smart decision.

Refinancing might make sense if you want to:

  • Obtain a considerably lower interest rate
  • Consolidate high-interest debt
  • Drop your mortgage insurance
  • Shorten the term of your loan

What you need to know:

  • You will incur closing costs with the new loan. Is a lower monthly payment a good value in the long run?
  • Are you planning to sell your home in the next 1-3 years? If so, a refinance might not be the best option.
  • You have the option to get a mortgage with a term that ranges from 10 years to 30 years and the pros and cons of a shorter term versus longer term should be evaluated in the context of your overall financial plan and goals.

These and other scenarios deserve your consideration if you’re considering a refinance. Taking out cash is another option with a refinance.

Cash out refinance:

A cash out refinance can allow you to:

  • Pay off debt and potentially save money on other high-interest loans
  • Fund home improvements that increase the value of your home
  • Finance a second home, vacation home, or investment property

What you need to know:

  • You can borrow up to 80% of your home equity
  • Loan payments may be tax deductible
  • The new loan replaces your current mortgage and carries a higher balance

Get an initial estimate on how much equity you have in your home with homebot.

Please note that this is just an estimate based on your address and may not reflect the actual value of your home.