Jose Diaz - Loan Officer
5 Motivos para Refinanciar

Mortgage refinancing, in general terms, is a restructuring of the debt owed to banks to pay for housing. Here the 5 Reasons why you should Refinance your Current Home Loan.

This means that, through the new acquisition of a credit, the debt that was previously obtained can be paid and thus favorably modify the payment term and interest rates.

Refinancing is easy to request, however, before requesting a refinancing, it is advisable to seek advice from a professional Loan Officer so that they can answer all your questions and guide you throughout the process.

Can you refinance your mortgage at any time?

There’s no legal limit on the number of times you can refinance your home loan. However, mortgage lenders do have a few mortgage refinance requirements that need to be met each time you apply, and there are some special considerations to note if you want a cash-out refinance.

5 Reasons to Refinance Your Home Loan 

Modify your monthly payments: You can reduce your monthly payments if you refinance your loan with a longer term. For example, if you refinance a 15-year mortgage with a 30-year loan, you have more time to pay back what you owe. This means that your monthly premium will be lower.

Lower interest rate: You may be eligible for a lower interest rate if you have a higher credit score or lower debt than when you first got your mortgage. You may also qualify for a lower interest rate if market rates have dropped since you signed the loan.

Switching to a fixed rate: If your original loan is an adjustable rate mortgage (ARM) and your initial fixed term is about to expire, you may want to refinance to a fixed rate mortgage. Protect yourself from rising interest rates in the future by locking in a rate. And it’s easier to plan and budget when you have the same principal and interest payment each month.

Reducing the term of your loan: If you can afford to increase your monthly payments, one option is to shorten the term of your loan. By paying more for a shorter period of time, you could save thousands of dollars in interest over the life of the loan and own your home mortgage-free sooner.

Disburse cash: You can use the money you disburse from your capital for different purposes. You can choose a cash-out refinance to consolidate debt, pay home repair bills, or fund retirement accounts.

How do I know if my refinance is worth it?

So how much should mortgage rates fall before you consider whether refinancing is worth it? The traditional rule of thumb says to refinance if your rate is 1% to 2% below your current rate. Make sure to factor in your current loan term when considering refinance though

If you are thinking of buying or refinancing a property in Miami, Florida, send me a message in the box below or click here, and I will be ready to provide you with a totally free Financial Advice.

Continue reading...

Get Pre-Approved by Yourself

Get Pre-Approved by Yourself!

Are you looking to get pre-approved by yourself? Here you are in the correct place, your Home Loans in just 1-Click. Please follow the instructions

Contact me