Refinancing your mortgage loan is a relatively simple concept, but it offers many advantages that are only available to you because you own your home.
You can refinance your existing home loan to lower your monthly payment, take advantage of lower interest rates, reduce the term of your loan, consolidate all of your debts into a single loan, or take out cash when you need it most. Your new loan can be structured to save you money both in the short and long term.
With a home refinance from LoanMerica, your new loan pays off the old loan, and you will make payments on the new loan. Prior to issuing the new loan, LoanMerica will arrange for an appraisal of the value of your property. Your credit score and income will also be factored into the terms of your loan.
When you refinance your mortgage, you can refinance your existing loan to a new loan with a new rate and term (traditional mortgage refinance), or you can take out money above and beyond what you owe on your current mortgage (cash-out mortgage refinance). It's nice to have that extra cash, but with a cash-back refinance your loan balance will be greater and your monthly payment will likely increase.
LoanMerica will help you structure a loan that strikes a balance between lower monthly payments and a longer term. The total amount of the new loan will typically include the principal, closing costs, prepayment penalty (if any) and the interest you pay over the life of the loan.
If you elect to do a cash-out refinance, the cash you take out of your home can be used for a variety of purposes, even as a down payment toward the new loan. Regardless of how you plan to use it, we encourage you to spend the money wisely!
LoanMerica is available 24/7 at (800) 391-9310 to answer any questions, and help you determine if refinancing is right for you. If you're paying a high interest rate on your current loan and your financial wherewithal is improving, chances are it is!