Refinance Loans

• What is refinancing?
  Refinancing is the process of replacing your existing mortgage with a new one, often to achieve a better interest rate, change the loan term, or access home equity.
• Is refinancing worth it?
  Refinancing can be worth it if it lowers your monthly payments, allows you to access cash from home equity, or helps you pay off your loan sooner with better terms.
• How long does the refinancing process take?
  Typically, refinancing can take
  anywhere from 30 to 45 days, depending on the complexity of the loan and the lender’s process.
• Are there costs associated with refinancing?
  Yes, refinancing involves closing costs that may include appraisal fees, loan origination fees, and title search costs. However, many borrowers find these costs can be recouped through lower monthly payments over time.

How Can a Borrower Benefit from a Refinance Loan?

• Lower Monthly Payments:
  Refinancing to a loan with a lower interest rate can
  significantly reduce your monthly payments, saving you money in the long run.
• Access Home Equity:
  If your home’s value has increased, you can tap into your home equity through a cash-out refinance to pay for expenses such as home improvements, education, or other major costs.
• Shorten Loan Term:
  Refinancing to a shorter loan term, such as from a 30-year to a 15-year mortgage, can help you pay off your loan faster and save on interest over the life of the loan.
• Switch Loan Types:
  Refinancing gives you the opportunity to switch from an
  adjustable-rate mortgage (ARM) to a fixed-rate mortgage, offering more stability and predictability with your payments.

Refinance Checklist

Before you decide to refinance, make sure you are prepared by reviewing this checklist:

• Check Your Credit Score:
  Lenders will evaluate your credit score to determine your eligibility for refinancing and the terms you can qualify for.
• Assess Your Home’s Value:
  Your home’s current value will impact the loan amount and whether you can access any home equity.
• Understand Your Loan Balance:
  Know how much you owe on your current mortgage to determine if refinancing will be worthwhile and if you can save money.
• Determine Your Goals:
  Decide whether you’re refinancing to lower your payments, shorten your loan term, or access equity. Your goals will guide your refinancing options.

What You Need to Know About Refinancing

Refinancing can be an effective way to improve your mortgage terms and overall financial health. However, there are a few important considerations to keep in mind:

• Closing Costs:
  Refinancing typically involves closing costs. Be sure to calculate whether the savings from refinancing will outweigh these costs over time.
• Loan Term Length:
  Changing the term of your loan may impact your payments. A shorter term often results in higher monthly payments but saves you on interest in the long term.
• Potential for Higher Costs:
  Depending on your situation, refinancing may result in higher finance charges over the life of the loan, especially if you extend the loan term or take out more money.

Ready to Refinance?  Here’s What You Need to Think About First…

Are you planning on staying in your home for a while, or are you thinking about moving soon? If you plan to stay in your home for more than two years, refinancing may be a great option. Refinancing typically involves closing costs, but homeowners who stay in their homes for a longer period often recoup those costs through reduced monthly payments.

Tapping Into Your Home’s Equity:
If your home has appreciated in value since your purchase, refinancing could provide an opportunity to access that equity. Whether you’re paying off debt, funding a home renovation, or covering other expenses, a refinance loan can turn your home’s value into cash.

Is It Time to Grow Your Home?
As families grow, you may need more space. Refinancing to fund a home improvement project can increase your home’s value and, in many cases, pay for itself over time.

Are Your Loan Terms Outdated?
If your mortgage terms no longer fit your current needs, refinancing might help. You could switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or shorten your loan term from 30 years to 15 years to save on interest.

Call Us Today to Learn More About Refinancing
Refinancing may be the right choice to improve your mortgage situation and achieve your financial goals. To learn more about FHA loans or to determine if you qualify, contact Steven Batista at Legacy Mortgage Group Inc. who is your experienced loan officer today.  If you’re ready to start the loan application, click Apply Now

Please note: These materials are not from HUD or FHA and were not approved by HUD or a government agency. In some cases, refinancing may result in higher finance charges over the life of the loan.