Is a refinance right for you?

There are several reasons a homeowner may want to refinance a loan.

Refinancing your remaining balance for a lower interest rate may save you interest in the long run, depending on the length of the new term. Maybe you need to replace an adjustable-rate mortgage with a fixed-rate loan or eliminate mortgage insurance once you've gained enough equity in your home.

Another option is a cash-out refinance, which is establishing a new mortgage for an amount higher than is owed, then taking the difference in cash to pay off existing debt or to cover home improvement costs.

An interest rate reduction of just a half of a percent can make a noticeable difference in the payments. Since there are fees associated with a refinance, it is important to review the numbers and make sure that the homeowner intends to live there long enough to recover the costs. When refinancing a loan, total finance charges may be higher over the life of the loan.

To find out if a refinance is right for you, contact us to review your options.