Refinance - America's Top Mortgage Broker

Is it Time to Refinance?

Have you ever asked yourself How can I lower my bills?

Every home owner is eventually faced with the question "Is this a good time to refinance?" Depending on the purpose of your loan, particularly cash out or debt consolidation, the interest rate obtained may not be as crucial as the net benefit received by refinancing. If you are, however, refinancing just the current balance of your mortgage you are typically going to want to save at least 1% on the interest rate.

The decision has always meant balancing the savings of a lower monthly payment against the costs of refinancing. However, in the current mortgage market, lenders have introduced "no cost" and "low-cost"refinancing packages that minimize and even eliminate the out-of-pocket expenses of refinancing. These refinancing packages compensate with a higher interest rate or by including some of the costs in the amount that is financed. With the new low-cost /no-cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates.

Some typical reasons to refinance

Lower your monthly mortgage payment to improve cash flow
Switch from an Adjustable Rate Mortgage (ARM) to a fixed rate loan
Switch from a fixed rate loan to an Adjustable Rate Mortgage (ARM)
Free up tax-deductible cash
Eliminate Mortgage Insurance (MI)

Refinancing to Consolidate Debt is a popular tool to manage high credit card interest rates. Obtaining cash to consolidate your debts, for home improvements, or for any reason has never been easier. There are two approaches a borrower can take to secure the needed cash:

refinance your existing 1st mortgage into a new loan along with the additional "cash-out" proceeds. Although the lower interest rates of a 1st mortgage may have some appeal, many borrowers do not meet the equity requirements for this approach, or do not want to make any change to their current 1st mortgage loan
taking out a 2^nd Mortgage/Home Equity Loan. This can be a very flexible and beneficial option for securing the needed cash.

How long you expect to stay in your home is a principal factor to consider when refinancing. If you'll be moving in a few years, the month-to-month savings may never add up to the costs that are involved in a refinancing. Use our refinance calculator to help you to determine if now is the right time for you to refinance or better yet, call American Brokerage today. One of our knowledgeable staff will help you to determine the best course of action for your refinancing needs.