Why Refinance?

REASON TO REFINANCE: Most people want to reduce their monthly payments; some want to consolidate outstanding debt, such as combining a first and second mortgage into a new first mortgage. Refinancing requires an application, credit check, title search, and as well as an appraisal.

EQUITY: Some people want to tap into the equity in their homes, and use the cash out to buy investment property, pay for tuition, purchase car, etc. One other factor involved in refinancing your mortgage: how much money you'll need or want to borrow. Most lenders will let you borrow around 80% of your home's current appraised value. Some will allow more, if you're simply refinancing your existing loan. But, if you're looking to tap equity, known in the mortgage industry as a 'cash-out refinance, you'll probably find that it's less than 80%. In many cases, cashing-out will mean that you'll have a larger mortgage balance than before, and you'll have to qualify for that new mortgage.

REDUCE MONTHLY PAYMENT: Some people just want to get out of a mortgage product that they don't like, or that's costing too much like going from an ARM to a fixed rate mortgage.

PROCESS TO REFINANCE: Refinancing is similar to the process you encountered when you closed on your first mortgage. It requires an application, credit check, new survey and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive.

Mel Smith

845-290-3319