What is refinancing?
Refinancing is when you replace your current mortgage with a new home
loan. This new mortgage comes with a new term, interest rate and monthly
payment that is normally more affordable in the long-run.
As a homeowner, you may qualify for a number of benefits that can yield
substantial savings when you refinance your mortgage. Refinancing may
allow you to tap into some of your home's value, helping you to make the
most of your finances. Prime Home Loans has a variety of refinance options to fit
any situation and budget. Choose from two types of refinancing options:
Choose from two types of refinancing options:
Rate-and-Term Refinance- Consider this option if your
financial status changes and you wish to pay your house off early or
if your current interest rate is higher than the market rate.
Cash-Out Refinance- Consider this option if you would
like to take some of the equity out of your home and use it as cash
for other purposes.
There are multiple reasons that you may be considering refinancing your
mortgage. A few include:
Lowering your monthly payments - Reducing your
interest rate with a refinance may allow you to build more equity in
your home while decreasing your monthly payments.
A shorter loan term - When interest rates fall,
homeowners have an opportunity to refinance their existing home loan
for another with a significantly shorter term.
Eliminate Private Mortgage Insurance (PMI) - If you
originally purchased your home with less than 20% down, you are likely
paying for private mortgage insurance. If your home value has
increased enough, a refinance may lead to an end of those extra
Adjust your loan type - Even if you are not looking
to lower your interest rate or monthly payment, you may be looking to
switch your loan type from an Adjustable-Rate to a Fixed Rate, or vice
Cash-out Refinance options - A cash-out refinance
allows you to take out a new mortgage for more than you owe so you to
take the difference. This can help with any upcoming large expenses.
Consolidate medical or student loan debt.
Which refinance option is right for you?
Ready to unlock the equity in your home and take control of your
financial future? You can get pre-qualified in as little as 10 minutes
with our e-Mortgage. Talk to your loan officer to assess which
refinance option is the right one for you.
*IMPORTANT – when refinancing your existing loan, your
total finance charges may be higher over the life of the loan.