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Refinance Loans
Most of the loan programs described on this web site are also available as refinance loans to homeowners and rental property owners. There are a number of circumstances in which a refinance might be worthwhile.
If you have an amortized loan in which payments include both principle and interest, you may want to lower your payments by changing to interest-only payments, or an option payment loan.
In the last five years many people who purchased or refinanced chose adjustable rate mortgages with an initial fixed rate period of 2 to 7 years. These loans often had excellent rates and were a good choice at that time. Now we are seeing a number of people who are at or near the end of the fixed rate period, at which time the interest rate will increase. A new loan might offer lower payments.
It is important to meet with a knowledgeable loan officer who can offer alternate financing choices. In many cases you will be able to minimize the difference between the old and new payments. Once your loan officer has an idea of your overall financial picture and the length of time you plan to own the property, she will be able to recommend suitable new financing.
Depending upon whether or not your financial situation has improved or your property has appreciated since your purchase or last refinance, you may find that you can lower your interest rate by refinancing.
Many people use the equity in their homes to finance other ventures, whether it is another investment, an addition to the house, college tuition, or a new business.
Refinancing often makes sense, but closing costs can amount to several thousand dollars. Anyone considering refinancing a real estate loan should work with an experienced loan officer to determine if a new loan would be financially beneficial. |
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