Refinance Loans
Refinancing is the process of paying off your existing mortgage with a new mortgage. Typically, you refinance your mortgage to reduce your interest rate and monthly payment or change the length (or term) of your mortgage. You may also refinance to take cash out from your home’s equity.
Refinancing can be a powerful tool for managing your finances, but it’s important to weigh the costs and benefits. While a lower interest rate or shorter loan term can save you money over time, refinancing usually involves closing costs, fees, and possibly extending the time it takes to pay off your home. Homeowners should carefully evaluate their goals, current interest rates, and how long they plan to stay in their home before deciding if refinancing is the right move.
Refinance Characteristics
1) Refinancing replaces your current mortgage with a new loan, often with different terms, rates, or lenders
2) Many homeowners refinance to secure a lower interest rate, which can reduce monthly payments and save money over time
3) Refinancing can allow you to shorten or lengthen your loan term, depending on your financial goals
4) Cash-out refinancing enables you to borrow against your home’s equity to fund major expenses like renovations or debt consolidation
5) The refinancing process typically involves application fees, appraisal costs, and closing costs, which should be considered when evaluating savings
6) Refinancing can be used to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for more stability
7) It can help homeowners consolidate debt or improve cash flow by adjusting loan terms to match their financial situation
8) While refinancing offers potential savings and flexibility, it’s important to weigh the long-term costs and ensure it aligns with your plans for staying in the home
5) VA loans do not require mortgage insurance, which can save borrowers money on their monthly payments
6) VA loans have flexible credit requirements, which can help borrowers with less-than-perfect credit still qualify for a mortgage
7) VA loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
8) VA loans allow for options for refinancing, including streamline refinancing and cash-out refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
Disclaimer: Johnnie Fleming, NMLS #1177346 – NEXA Mortgage ("LD," "We," "Us," "Our") is exempt from mortgage and NMLS licensing for the states we lend in. Our loan products require a business purpose, and the property must be used as a non-owner-occupied investment property, also known as a rental property. Our rates, loan terms, and loan conditions are only offered to qualified borrowers, and may vary based on loan product, credit score, real estate investment experience, deal structure, property state, and several other applicable considerations. Our rates, loan terms, and quotes, are subject to change daily, at any time, with or without notice. Loans requiring less documentation may result in a higher interest rate and higher annual percentage rate ("APR").
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