There are three options for refinancing your mortgage. Each method has its benefits and costs.
Refinance your mortgage with many options. Each option can be tailored to your individual needs. Beverly Hills Mortgage Brokers recommend talking to your lender about the costs and benefits of each option. Refinancing can be time-consuming and costly.
Refinance is a way to replace an existing loan with a new loan that pays off the old loan. The new loan will offer you better terms and rates, which will help improve your financial situation.
Refinances with no cash out
The primary purpose of a no-cash-out refinance loan is to repay the mortgage balance. This option is the most common and may be a good choice for you if:
- Lower your mortgage rate Refinancing might be an option if you have a lower mortgage rate than when you first closed your mortgage. This can reduce your monthly payments and the amount of interest you pay over the loan’s lifetime.
- You have the option to switch from one mortgage product to another.
- Increase equity faster.If your financial situation has improved since your purchase, you may be eligible to refinance to a loan that has a shorter repayment term. Switching from a 30-year fixed-rate mortgage to a 15-year fixed-rate mortgage is possible. Even though your monthly payments may be higher, refinance to a lower-rate mortgage rate will still allow you to build equity faster, own your home sooner, and pay less interest.
Refinance with cash out
If you have substantial equity that has been built up from your monthly payments, or the appreciation of your home, a cash-out refinance may be a good choice. You can improve your financial position and increase your home’s value by doing this.
Cash-out refinance refers to refinance of your mortgage for more than you owe. You get some cash back in return. Cash-out refinances have a higher rate because you borrowed more money to finance your mortgage. Because the lender is taking on more risk, this rate is higher.
Freddie Mac Enhanced Relief Refinance(sm)
If you’re looking to refinance your home, an Enhanced Relief Refinance might be the right choice. This is because your loan-to-value ratio (how much your mortgage owes relative to your home’s appraised value) is higher than what is allowed for a no-cash-out product. These are the conditions to qualify for this type refinance.
- Freddie Mac must own your loan.
- Note dates must be set for your loan on or after October 1, 2017.
- It is your responsibility to keep up with payments. You must not have more than 30 days delay within the past six months and not more than one 30-day delay during the last twelve months.
- Refinance your mortgage only if it has not been refinanced under HARP. This federal program was established in 2009 and expired December 31, 2018.
A Enhanced Relief Mortgage will allow you to get a monthly payment you can afford. You may be able to lower your monthly mortgage payment, reduce your mortgage rate or replace an ARM mortgage with a fixed-rate mortgage. It can reduce your monthly mortgage payment and rate, replace an ARM with a fixed-rate mortgage, or reduce your term (e.g.
Beverly Hills Mortgage Brokers recommend that you speak to your lender about the possibility of refinance. You don’t have to refinance your loan with the same lender. It is in your best interests to speak with multiple lenders to compare Loan Estimates and determine which lender has the best terms and lowest cost.
These extra steps can save you thousands in the long-term, even though it might take longer.
Refinance fees will be charged to your account.