Refinance your mortgage to get a lower monthly payment!
How Does Refinancing Your Mortgage Help You Get a Lower Monthly Payment?
Refinancing your mortgage for a lower monthly payment could be a great way to battle rising costs of living! When you refinance your mortgage, you will replace your current loan terms with a new mortgage agreement. When you extend your loan term length or lock in a lower rate, you may be able to keep more of your money in your pockets and reduce your mortgage payments.
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What Does it Mean
When you refinance your mortgage, you are taking out a new mortgage on your current home that will entirely replace your current mortgage. The new mortgage will have a new interest rate and a new loan term. There are a number of reasons why someone may be looking to refinance their mortgage. With a rate and term refinance, borrowers are typically looking to lower their monthly payments.
How Does a Mortgage Refinance Work?
When you refinance your mortgage for a new interest rate and loan term, you’re taking out a new mortgage on your home that replaces your current mortgage and pays off the entirety of its balance. A mortgage refinance is typically a quicker process than financing a home purchase and will likely require an appraisal of your property. You may also be able to roll in other incurred costs of refinancing, like closing costs and appraisal fees, into your monthly mortgage payment. Depending on your situation and the loan terms you select, refinancing your mortgage can help you lower your monthly mortgage payments, get a better interest rate, or pay off your mortgage faster if you refinanced for a shorter loan term.
Frequently Asked Questions
- Get a Lower Interest Rate
- Lower Their Monthly Payments
- Pull Equity Out of Their Home and Get Cash Out
- Consolidate Debt
- Get a Different Type of Mortgage Loan
- Shorten Their Loan Terms to Pay Less Interest Overtime
Disadvantages of doing a mortgage refinance are:
- Possibly incurring refinancing fees
- An increase in term length, which may cause you to take a long time paying off your mortgage
- Increased interest payments overtime, depending on the term you select
Your exact monthly payment depends on the interest rate you qualify for and the term you select. Contact us to review your options and calculate your new payment.
Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to newfi.com/get-started or fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!