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At U.S. Home Mortgage, we offer several different types of loan programs to meet all your needs.
There are several reasons to refinance your home:
To lower the interest rate on your mortgage, reducing your monthly payments and overall cost
When you purchased your home interest rates may have been higher than they are now; and factors like your credit and the amount of your down payment may have affected your rates as well. But interest rates fluctuate and your financial status can change making it financially savvy to refinance.
To reduce the term or length of your loan
Another advantage of refinancing is decreasing the term of your mortgage. For example, if you originally had a 30-year mortgage and have been paying it for 5 years, you could refinance to a shorter term and save thousands of dollars of interest. In addition, if the interest rate is lower, and you maintain the same monthly payment, you will build up equity in your home more quickly because more of your payment will be going towards principal.
Combining a first and second mortgage
It is possible to combine a first and second mortgage, which will result in one payment and may significantly lower your monthly payment.
Getting rid of mortgage insurance
If you made less than 20% down payment when you purchased your home, you may have private mortgage insurance included in your monthly payment. If your house has appreciated since then or you have paid down the loan balance, your equity may now be more than 20%. By refinancing you may eliminate that monthly mortgage insurance premium. (Call us—you may not even have to refinance to omit your PMI)
Other reasons include switching from an ARM to a fixed-rate mortgage
When interest rates are high, adjustable rate mortgages (ARMs) can be attractive. However, as interest rates increase, those adjustable rate house payments can increase as well. Most people appreciate the security of knowing that the monthly payment will remain the same, regardless of the current economy.
Combining all your debts or taking cash out and still having a lower payment
One way to obtain more liquid cash is to use the equity you’ve built in your home by doing a “cash-out” refinance. You can refinance for an amount higher than your current principal balance and take the extra funds as cash. This can provide money for anything including remodeling your home, paying off bills, or sending your children to college. And it is possible that your new mortgage payment could be lower than your existing payment.
All of these are excellent reasons to pursue refinancing.
Refinancing is similar to the process you went through when you purchased your home.
Asking yourself these easy questions may help you determine if refinancing is right for you:
- How much can I lower my current monthly payment?
- How long do I plan to stay in the house after I refinance?
- How much will I pay in refinancing costs?
All you need to know is how much you currently owe on your house, the amount of your payment and the approximate value of your house. With that information, your loan officer at U.S. Home Mortgage will be able to tell you if it is beneficial for you to refinance. | 
