Home Refinance

Analyze your options

Mortgage Refinancing is a process in which you replace one or more existing loan with a new loan, on the same property. Before you decide to fill out a home loan refinance application, there are a number of facts you need to consider.

In most refinancing situations, the borrower does so mainly to reduce the interest cost and replace it with a new lower rate.

There are other reasons, like a buyout of a spouse or family member, Why Refinance?

  • Lower Your Payment
  • Consolidate Your Debt
  • Get Cash from Your Home
  • Keep Your Payment from Rising

We are licensed in RI, MA, CT, NH, VT, and ME.

Benefits of Refinancing

The main goal of refinancing should be to lower your monthly payment, reduce your payment period to save money.

Get out of a H.A.R.M.’s way

What’s a H.A.R.M.? A High interest rate Adjustable Rate Mortgage (A.R.M.).
The problem with A.R.M. mortgages is that most consumers do not understand that the initial rate offered during the introductory period is a discounted “teaser rate”. So even if mortgage rates do not rise, the loan will “adjust” to a higher payment rate at the end of the initial introductory fixed period. The best time to switch from your adjustable rate mortgage to a fixed-rate mortgage is now. Fixed rates are still at all time historic lows. Refinance to a fixed rate, and protect yourself against fluctuating interest rates.  You won’t have to worry about rates, the financial markets, or the state of the U.S. economy. And, if rates ever go down, you always refinance again, to another fixed rate!

Eliminate PMI

Some homeowners may have had to pay an extra fee called Private Mortgage Insurance (PMI). This is required for borrowers who cannot pay 20 percent of the loan for their down payment and the amount financed is greater than 80 percent of the appraised value. If your house has increased its value since your purchase and you’ve consistently made your payments, your home equity may now be above that 20 percent. Refinancing may actually get rid of the PMI payments.

Watch out for Pre-Payment penalties

Certain types of refinancing options contain penalties for early payments as well as closing and transaction fees. Make sure you ask the lender you are dealing with if the mortgage includes a pre-payment penalty. These loans often have a lower initial rate, but will cost you dearly if you end up having to sell or refinance your home, unexpectedly, in the first few years of the mortgage contract.

Should You Refinance? Do the math.

This is a do it yourself mortgage web site, so put our set of mortgage calculators to work. Click Mortgage Math now to calculate the potential benefits of refinancing now. And, if you are still not sure, or if you’d like to get started, give us a call at 866 HOME -310. A Certified Mortgage Planner will give you straight answers with no hype, no pressure, just the facts.