Benefits of Mortgage Refinance
Refinancing an existing mortgage can be very cost-effective. Mortgage refinance can save you money by lowering your monthly payments. Another way refinancing can benefit you is that it could shorten the life of the loan. Refinancing can raise money for projects or enhance a life style. Each real estate loan must be examined individually for its paybacks and to realize if it makes economic sense.
The first way a mortgage refinance can save you money is if the new loan lowers the interest rate.
The interest rate on your mortgage is linked to just about every part of the loan. If you have a lower interest rate, generally your monthly payments are lower. A lower interest rate also may allow you to build equity in your home more quickly.
A lower interest rate is the easiest to evaluate. The note interest rate is the rate at which the money is being charged to borrow. If you know what interest rate your current loan is then you can check the market to see if the current rates available to you are lower. This part can be complicate but our mortgage brokers are here to help just fill out the short form application and we can check what interest rates are available to you.
The mortgage interest rate could be lower because of changes in the market conditions or because your credit score has improved. In other word you could receive a lower interest rate real estate loan because of macroeconomic reasons as well as personal reasons.
The reason we have to check out your personal credit information is that real estate loans are a personally underwritten loan. Each person’s loan must be calculated individually. This is where California Loan Associates helps the most. We have personal loan officers that study your application and search for the best possible loan terms for you from all the lenders available in our network.
California Loan Associates are connected to one of the very largest networks of real estate loan lenders. This gives us the power to locate the loan that meets all your needs.
Lowering the monthly mortgage payment is another key benefit that many people are looking to refinance to achieve. There are many tactics that can lower your monthly mortgage payment and which one is right for you is a personal decision. You can work with one of our CLA mortgage brokers to find a loan term that lowers your payment.
Refinancing can lower the interest rate causing the payment to be less. Sometimes the loan can be made for a longer term, prompting a lower payment. Refinancing a lower amount because of equity build up since the last loan was created is another way to lower the payment. The loan term can also create a lower monthly payment.
Give our CLA mortgage brokers the chance to save you money every month by filling out the loan application form. Let’s see how much we can save you.
Did you know you can get cash out of a mortgage refinance?
Obtaining a cash out mortgage refinance can have many advantages. A consolidation loan for other real estate debt can have considerable benefits to the borrower. Consumer debt like credit cards have very high interest rates and payments and it might make sense to combine them into a mortgage refinance.
If the property has equity, then a refinance to take money out to remodel could enhance the quality of life and may increase property value. Other reasons for a cash out mortgage refinance are vacations, buy a new car, education expense, start a business and other investment opportunities. Naturally the list goes on forever because it is the individual personal needs or wants that creates the desire for a cash out mortgage refinance.
Another reason for refinancing is to pay down the existing mortgage debt. A refinance can do this by borrowing less money. It can reduce the debt paid by lowering the number of years to pay the mortgage, greatly reducing the total amount paid to the lender.
Refinancing a mortgage begins with a no obligation application. Just follow the link and fill out the loan application and we will give you the information you need to see if a mortgage refinance is right for you.