People choose to refinance their home mortgages for many reasons. Refinancing helps to lower your current monthly payments so that you can put the extra money towards your child’s education, taking a vacation, renovations, home improvements, purchasing a new vehicle, paying off medical bills, or a myriad of other expenses.
When refinancing your existing loan, your total finance charges for your new loan may be higher over the life of the loan.
For more information about home refinancing check out our helpful topics below or speak directly to one of our experienced loan officers.
The BrightPath Guide to Refinancing Your Home
Our guide to refinancing your home includes information about every step of home refinancing to help you get through the process smoothly.
- Preparing to Refinance: Before you start the process it’s important to know what your goals are. This allows you to be able to choose the right refinance loan for you.
- Researching Options for Refinancing Your Home: Gathering information about the variety of refinancing options out there helps you hone in on just the right choice for you.
- Applying to Refinance Your Mortgage: Once you know which loan is right for you, it’s time to apply. Our mortgage lenders can guide you on all the documents you’ll need to fill out a complete application.
- Getting the Appraisal: Before the loan is approved, you’ll need to have the house appraised. This tells the mortgage lenders what the house is worth so they can provide you with an accurate loan amount.
- Closing on the Mortgage: Closing on your new mortgage will be an exciting day. You’ll meet with the mortgage lender to sign the new loan documents and pay any closing costs.
- Staying on Top of Your Mortgage: It’s important to make sure you continue to make any necessary payments on your mortgage. If you’ve received excess funds in the closing, now is the time to use them.
A cash-out refinance allows you to take out a new loan that is higher than the current cost of your home loan. You then use that money to pay off your old home loan, and the extra money can be spent however you wish. You then have a new home loan to pay off instead.
FHA Streamline Refinance Loan
The Federal Housing Administration offers a streamlined refinance loan option that lowers your monthly payments and interest rates if you already have an FHA loan.
The Home Affordable Refinance Program helps borrowers whose homes have decrease in value over the years. This is especially helpful for those who are underwater (owe more than the house is worth) on their mortgages.
Super Saver 25 Year Mortgage
The Super Saver 25 Year Mortgage is a great option to help pay off your home faster, while still being affordable. Many 15 and 20 year programs may be unaffordable for your financial situation. By meeting in the middle with a 25 year mortgage, you can still take advantage of the thousands of dollars in savings on interest, without breaking the bank.
Consolidate Your Debt by Refinancing a Home
Many Americans are strapped with massive amounts of debt. Consumer debt, especially, tends to have a much higher interest rates than a home loan. By refinancing your home, you can use the excess funds to pay off credit card or other high-interest debt, and then focus on paying down your lower-interest mortgage.
Refinance a Home Mortgage on an Investment Property
If you have a second home as an investment property, you may be looking to refinance your mortgage. There are a variety of loan options you can consider to shorten your repayment term or interest rate. Call us today at 888-222-6003 to figure out which option is best for you.
Refinancing your home can be a great choice to help you pay off your mortgage faster or make your payments more affordable so you can focus on other financial goals. If you’d like more information about how BrightPath can help make this happen for you, please call us today or contact us online. We love helping people turn their home ownership dreams into a reality.