Refinance A Mortgage
With interest rates reaching record lows, you may be wondering if refinancing your mortgage is right for you. Below is a quick guide for home owners interested in lowering their mortgage payments and refinancing their home loans.
Can't wait to get started on refinancing your mortgage? Pre-qualify for a refinanced home loan now!
When Refinancing Is Right for You
While refinancing your mortgage may seem like a great opportunity for you to lower your monthly mortgage payments and reduce your debt, make sure to use a mortgage calculator and calculate if refinancing your mortgage will actually save you in the long run.
Refinancing your mortgage should be done to reduce your interest rate, shorten your term, or consolidate any revolving debt.
Refinancing your mortgage may be right for you if:
- Your goal is to get a lower interest rate and lower your monthly payment
- You Want to shorten the length of years on your mortgage.
- You need to get out of an adjustable-rate (ARM) or interest-only mortgage
- Want to create additional cash flow each month with your savings.
Refinancing your mortgage may NOT be right for you if:
- You plan on moving within a year.
- You haven’t made timely payments on your mortgage within the last 12 months.
- You are upside-down on your mortgage and owe more than your property is worth. It may be difficult to be approved for a refinanced mortgage.
How To Refinance your Mortgage
When refinancing your mortgage, you can choose to take cash out, or refinance the remaining amount on the loan. It's a good idea to call us at 630-971-1901 or email us at Mid American Mortgage, Inc. in Downers Grove, Illinois so we can give you a FREE Refinance Analysis to make sure it’s the right move for you.
Before you start the refinancing process, review your current situation to determine if you would quality for a refinanced home loan. Consider your income, employment history, credit score and other loan qualifiers, as these will apply on refinancing loans as they do for first time home buyers.
As you begin the refinance process, make sure to collect important documents that will be needed for home loan refinancing such as information about your current home loan, income statements, tax and property information, and homeowners insurance rates.