Balancing the costs of refinancing your mortgage against your savings!
Should you refinance?, Would Refinancing Be Worth It?

There are many other reasons to refinance. Refinancing is generally done to lower your interest rate, lower your monthly payment, reduce the loan term, get out of a balloon mortgage or switch from a variable rate to a fixed rate or visa-versa. 

• Refinance your 30 year loan for a 15 year term and build equity faster
• not happy with your current mortgage holder
• eliminate mortgage insurance

Knowing or having a good idea of how long you plan on owning your house is the first question. If you are retiring in your home....YES, you want the lowest rate available. This is because you want more of your money being applied toward your mortgages principle balance.....not the interest.

Why would anyone want an ARM - (adjustable rate mortgage)

• to lock in an extra low rate  
• Great for first time home buyers...makes initial payments lower than a tradition loan
• if you plan on moving within the next 1 - 5 years

If you are planning on moving in a year...get a 3 year ARM, if your moving in 3 years...get a 5 year ARM, and so on up to a 10 year ARM.


Do it to get cash back - 2nd Mortgage options

• Debt consolidation loans make debt tax deductible
• get out from higher credit card rates
• exchange multiple debt payments in a single monthly payment
  
  
  

Combine a 1st and 2nd Mortgage.
Second mortgages are most often 5 - 8% higher than the first mortgage

• Combining two mortgages into one can save you hundreds each month 

When combining a 1st and 2nd mortgage, lenders require the 2nd loan to be at least 12 months old (seasoned), otherwise, this consolidation can be done as a cash out refinance loan. 


Do it for pocket money (HELOC - Home equity Line of Credit)

• remodeling
• business start-up
• pay for only what you use
• upgrading furnishings and appliances
• access the equity in your home like a checking account
  • Do it for a home improvement loan 
    • Increase the value of your home
    • put cash into your pocket

Other factors for refinancing
Combo loans, HELOC's, Home Improvement, cash-out, and 2nd mortgages can all be used to avoid paying mortgage insurance, and consolidation loans turn debts into tax deductions.  See loan types

Try out our Refinance Calculator to see how much money you save with a lower rate or a shorter term....you may also want to try our Amortization Program for fast easy computations.

For Commercial Mortgage industry...
see our page on CMBS (Commercial Mortgage Backed Securities)
2nd mortgages not allowed...we show a way around this


see Mezzanine Loans ...for Commercial Mortgage Loan Financing
How to get a Junior Lien (similar to second mortgage)

 
If you want more info. or to be considered for refinancing Click Here