Are you looking to optimize your mortgage, save money, or adjust your financial strategy? You've landed in the right place! Our Rate and Term Refinance options are designed to align with your evolving needs and goals as a homeowner.
What Is a rate & term Refinance?
A Rate and Term Refinance is a mortgage option where the interest rate and/or the term (length) of the mortgage is modified, but the loan amount remains close to the same. The first lien existing mortgage is paid off and a new loan is put in its place. Let's break it down further:
Rate Refinance:
This involves changing the interest rate of your current mortgage. Homeowners often refinance to a lower rate to reduce their monthly payments and save on the total interest paid over the life of the loan. This is particularly beneficial in a market where interest rates have dropped since the original loan was taken out.
Flex Term Refinance:
This refers to changing the length of your loan. Choose your term between 8-30 years. For example, if you originally had a 30-year mortgage, you might refinance to a 15-year term. Shortening your term can lead to higher monthly payments, but you'll pay off your mortgage faster and save significantly on interest. Conversely, extending your term can lower monthly payments but increase the total interest paid over time.
Common Rate & Term Uses
Change Your Loan Term:
Shorten Your Term: Accelerate your path to being mortgage-free! Refinancing to a shorter term often means paying less interest over the life of your loan.
Extend Your Term: Lower monthly payments by spreading them over a longer period. Ideal for easing your monthly financial burden.
Remove Mortgage Insurance:
If you've built up enough equity in your home, refinancing can reduce the cost of or eliminate the need for Private Mortgage Insurance (PMI), reducing your monthly outgoings.
Pay Off Construction/Renovation debt:
Get rid of that construction loan and take on a new loan that’s tailored for you.
Remove a Current Owner:
Life changes, and so do ownership needs. Refinancing can help in removing a co-borrower or former spouse from the mortgage, simplifying your property's ownership.
Lower Your Payment:
Benefit from potentially lower interest rates and reduced monthly payments. It's not just about savings, but also about financial flexibility and peace of mind.
Whether you're aiming to change your loan term, eliminate mortgage insurance, tackle student loan debt, remove a name from your mortgage, or simply lower your monthly payments, we're here to guide you through each step.
When to Consider a Rate and Term Refinance?
Falling Interest Rates:
If interest rates have dropped since you took out your original mortgage, refinancing could be a smart financial move.
Improved Credit Score:
If your credit score has improved, you might qualify for a lower interest rate.
Change in Financial Goals:
Whether you're looking to pay off your mortgage sooner or need to reduce your monthly expenses, refinancing can be tailored to your new objectives.
Market Opportunities:
Sometimes the market presents opportunities for more favorable loan terms, making refinancing an attractive option.