What the Heck is Refinancing

1. Get Started November 2019 What the Heck is Re몭nancing?? Back to blog Are you happy with your current Mortgage? Or do you need cash now? If you have speci몭c 몭scal goals you’d like to meet, you may want to consider Re몭nancing your Mortgage. So you’re probably wondering… “What the heck is Re몭nancing?” Does this mean I’m taking out a second loan?? No, it doesn’t! We’ll clarify the term… Re몭nancing occurs when you get a new mortgage to replace the original Mortgage. Re몭nancing is done to help a mortgage borrower; Whether it’s obtaining a better mortgage interest rate, APR and/or term, pulling cash out of your equity or consolidating debt. The 몭rst loan gets paid-off, allowing a new Mortgage loan to be created. It’s simply making a new mortgage and throwing out the original Mortgage. Most people tend to Re몭nance once they’ve had Equity built- up in their home. Much like “putting money down” for the original Mortgage, you can use your Equity towards Re몭nancing. Many borrowers tend to think that you need to have at least 20% Equity in your home in order to do this (Much like the myth of needing 20% cash to put down to obtain the original Mortgage.). However, you can Re몭nance with less; you just may need to pay a monthly PMI (Private Mortgage Insurance) if you’re above the 80% loan to a value

2. mark. But, the good news is that the money you save by Re몭nancing can be substantially more than the PMI payments- bene몭ting you in the end. (Plus, PMI is usually on a temporary basis.) So why would a homeowner re몭nance? Good question! There are many good reasons a homeowner may want to re몭nance their mortgage. Here is a shortlist of some of the most popular reasons to ReFi: – Perhaps your credit has improved, or there’s an uptick in the market, and you’d like to get a better mortgage interest rate and/or APR. – You’d like to change the term of the mortgage loan (To either shorten or extend the life of the loan. An example of this would be to go from a 30-year mortgage to a 15-year mortgage; shortening the term of the loan.). – You’d like to consolidate your debt by rolling all of your monthly loan payments into your mortgage; allowing you to make one payment a month at the same interest rate so you’re only paying back one loan. (Thereby helping your credit, your wallet and simplifying the payment process.) – You need cash and would like to liquify some (if not all) of your equity in exchange for the funds. This cash can be useful if you need home improvements, to pay off loans (auto, student, credit cards, etc.), and/or pay off other debts (that fancy wedding you had a few years back, medical or vet bills, etc.). – Get rid of the monthly Private Mortgage Insurance (PMI) payment. PMI is required if your LTV (Loan-to-Value Ratio) is above 80% (meaning your down payment was less than 20%). PMI cancels automatically when you pay off enough of your loan that your LTV reaches 78%, or if you’ve reached the midpoint of your loan term. However, if you currently have an FHA loan, it’s likely you’re currently paying PMI. The good news is if you have 20% equity built-up in your home, you may be able to re몭nance into a conventional mortgage and eliminate the PMI. – Your great rate is about to expire on your adjustable-rate mortgage (ARM) and you’d like to get a better mortgage rate on a 몭xed-rate mortgage. When should a homeowner NOT re몭nance? Sure, there are plenty of wonderful reasons to re몭nance, but there are also times or goals that you may have that would undermine re몭nancing. Here are some examples: – You want to re몭nance with a cash-out option to spend money on frivolous expenses.

3. – You JUST purchased your home. (This is also known as “Lender Churning” and although it’s bene몭cial to lenders it can costs borrowers more when considering the costs of re몭nancing.) – If you don’t plan to stay in your home for much longer, the bene몭ts of a lower interest rate may not actually bene몭t you when you take into account the costs associated with a new mortgage. Still, think re몭nancing can help you? See if you qualify in a matter of seconds by clicking here.  Financial Tips Share post: Re몭nancing Was this article helpful? Yes No 1 out of 2 found this helpful Related posts December 2016 February 2019 Tim Waller’s The NJ Real Estate Show Interviews Get A Rate’s Nick Marenoski How To Save Over $20,000 By Shopping For Mortgage Rates A home is often the biggest single purchase that a person makes in his or her lifetime. The United States ... The NJ Real Estate Show, a weekly radio show hosted by real estate veteran Tim Waller, sat down with Get... Financial Tips

4. Financial Tips Buying a Home Re몭nancing Financial Tips September 2017 November 2019 How A Cash Out Re몭nance Can Help You Let’s Prepare for a ReFi! Getting ready for a ReFi? Don't panic! Let us help you get prepared by looking over out Preparing for a ... If you’re a homeowner, the best investment you have is right under your nose - so many people forget about ... Financial Tips Financial Tips Re몭nancing Tools Purchase Calculator Re몭nance Calculator Affordability Calculator Rent vs Buy Calculator Credits / Points Calculator Programs Comparison 30 Years Fixed 15 Years Fixed

5. FHA Loan VA Loan About Us Company Information Press Room Careers Testimonials Contact Learn Blog FAQs Of몭ces NJ Of몭ce FL Of몭ce GA Of몭ce CA Of몭ce © 2021. Get A Rate LLC. All Rights Reserved NMLS #907795 Licensed Residential Mortgage Lender in CA, WA, GA, TX, PA, CT, FL, SC, IL and NJ (by the NJ Department of Banking and Insurance). Equal Housing Opportunity Lender. When and if acting as a broker, Get A Rate will not make commitments or fund mortgage loans. Registered NY Mortgage Broker. All NY mortgage loans are arranged with third party lenders – Get A Rate LLC does not directly offer or guarantee NY interest rates or loan programs and does not directly issue commitments or make 몭nal decisions on loan terms. This website is not authorized by the NYDFS and that no applications can be taken for NY loans on the site. Get A Rate LLC is an FHA Approved Direct Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. These programs are not a commitment to lend and program guidelines are subject to change. Additional Disclosures Home / HUD & RESPA / State Licenses & Disclosures, Terms & Conditions, Privacy Policy / 888-562-2611 / Rate Lock Policy / NMLS Consumer Access