- Tips to Lower your Electric BillPosted: 3 years ago
- 5 Easy Home Improvement Projects & Upgrades For the WinterPosted: 3 years ago
- Benefits to buying in the winterPosted: 3 years ago
- Cash In with a Cash-Out RefinancePosted: 4 years ago
- Mortgage MythsPosted: 4 years ago
- Q&A: All About Flooring — Hardwood, Carpeting, Tiling, LaminatePosted: 4 years ago
- Tip: 3 Foolproof Social Media Marketing TipsPosted: 4 years ago
- Tips for Hosting a Stress-Free Holiday DinnerPosted: 4 years ago
- Is a Mortgage Refinance Right for You?Posted: 4 years ago
- Check Your Disaster Supplies KitPosted: 5 years ago
- Create an Early Holiday Shopping BudgetPosted: 5 years ago
- 9 Ways to Make Moving Day EasierPosted: 5 years ago
- July 2018 Market Update – Twins Cities RegionPosted: 5 years ago
- Fall Homeowners ChecklistPosted: 5 years ago
- Scam Alert: Spoofed IRS Phone NumbersPosted: 5 years ago
- 15 Years of First Class MortgagePosted: 5 years ago
- How to buy a second homePosted: 5 years ago
- Q&A: Lawn Watering SecretsPosted: 5 years ago
- Troubleshoot Your Air ConditioningPosted: 5 years ago
- Your Mortgage, What to Expect: Clear To ClosePosted: 5 years ago
- Twins Cities Region Monthly Indicators – APRIL 2018Posted: 5 years ago
- Your Mortgage, What to Expect: UnderwritingPosted: 5 years ago
- Your Mortgage, What To Expect: Property AppraisalPosted: 5 years ago
- 3 Tips to Improve your Credit Score and Score a Lower Interest RatePosted: 5 years ago
- Changing Interest Rates Have A High Impact On Purchasing PowerPosted: 5 years ago
- The Myth of Multiple Mortgage Credit InquiriesPosted: 5 years ago
- Things to do BEFORE you buy a home.Posted: 5 years ago
- March Tech Tip: Pack Smarter With PackPointPosted: 5 years ago
- 4 Ways to Pay Off Your Mortgage EarlyPosted: 5 years ago
- Clean House in a HurryPosted: 5 years ago
- Your Mortgage, What To Expect: Document ReviewPosted: 5 years ago
- Chill Winter Utility BillsPosted: 5 years ago
- Six Tips to Help Your Home Sell This FallPosted: 5 years ago
- 4 Things to Know About Closing CostsPosted: 5 years ago
- Understanding Your Credit ScorePosted: 6 years ago
- Equifax Data Breach: What should you do now?Posted: 6 years ago
- Should You Refinance Your FHA to a Conventional Loan?Posted: 6 years ago
- 6 Ways to Save on Paint ProjectsPosted: 6 years ago
- Q&A: Mortgage InsurancePosted: 6 years ago
- How to Keep Your House Cool this SummerPosted: 6 years ago
- Mortgage Education: “What’s the Point?”Posted: 6 years ago
- Q&A: Spotting a Spoof SitePosted: 6 years ago
- Moving ChecklistPosted: 6 years ago
- Squash Marital Money SquabblesPosted: 6 years ago
- April 2017: Twin Cities Real Estate Market UpdatePosted: 6 years ago
- Your Spring Guide to Home StagingPosted: 6 years ago
- March 2017: Twin Cities Real Estate Market UpdatePosted: 6 years ago
- Don’t be a Victim — Four Ways Protect Yourself from Refinance ScamsPosted: 6 years ago
- Local Market Update: Minneapolis Area Association of RealtorsPosted: 6 years ago
- First-Time Homebuyers: Where to startPosted: 6 years ago
- Dear First Class Mortgage:Posted: 6 years ago
- First Class Mortgage. Our Expertise, Your Peace of Mind.Posted: 6 years ago
Is a Mortgage Refinance Right for You?Posted by
Are you looking to reduce your monthly mortgage payments, get a lower interest rate, convert your home equity into cash, or switch to a fixed-rate loan? Consider refinancing your home loan.
But before you jump into the refinance process, remember that everyone’s financial circumstances are different. Loan balances, interest rates, remaining months on the loan term – they all vary depending on each situation. However, there is one thing that is, and always will be, the same for everyone: math. And it’s only after you and your First Class Mortgage Consultant “do the math” that you should decide whether or not to refinance.
How does refinancing work?
Refinancing is the process of replacing an existing mortgage with a new loan. Typically, people refinance their mortgage to reduce their monthly payments, lower their interest rate, or change their loan program from an adjustable rate mortgage to a fixed-rate mortgage. Additionally, some people need access to cash to fund home renovation projects or paying off various debts and will leverage the equity in their house to obtain a cash-out refinance.
Goals for refinancing:
- Lowering your monthly payment: With a lower monthly payment, you are free to put the savings toward other debts and other expenditures or apply those savings towards your monthly mortgage payment and pay off your loan sooner.
- Remove private mortgage insurance (PMI). Some homeowners who have enough property appreciation or principal paid off will not be required to pay mortgage insurance which will reduce your total monthly payment.
- Reducing the length (term) of your loan. For homeowners who took out a mortgage in the early stages of their career, a 30-year mortgage may have made the most financial sense. But for those who want to pay off their mortgage sooner, reducing the loan term can be an attractive option.
- Switching from an adjustable-rate mortgage to a fixed-rate loan. When you have an adjustable-rate mortgage, your payment can adjust up or down as interest rates change. Switching to a fixed-rate loan with reliable and stable monthly payments can give homeowners the security of knowing that their payment will never change.
- Using the equity in your home to take out cash. With rising home values, you may have enough equity to take out a cash-out refinance. This money can be used to finance home improvements, pay off debts or to fund large purchases.
Regardless of your goal, the actual process of refinancing works much in the same way as when you applied for your first mortgage: you’ll need to collect financial documents and submit a mortgage refinancing application before you can be approved.
Is Now the Right Time to Refinance?
Ultimately, it’s critical to crunch the numbers to see if refinancing makes sense for you. Our website has a refinance mortgage calculator designed to help you calculate what your new payment would be.
Even if you’ve been unable to refinance in the past, loan programs and rates are always changing. These changes, along with rising home values in many markets, may enable you to reduce your rate or lower your monthly payments.
But you don’t have to go at it alone! Our mortgage consultants are always ready to answer your questions and guide you along the path to a successful refinancing.