Home Refinancing

30-year Fixed Rate and 10-year Adjustable Rate Mortgage products are great for borrowers who are looking for fixed rates over the long term. Borrowers who are looking for very low monthly payments should consider Interest Only Adjustable Rate Mortgage products with options for one or three years. Products like this will enable you to keep a fixed-rate on your mortgage for a period of time which is typically one to three years, but then you will have to refinance, sell the home or switch to  an adjustable rate mortgage option.

This is prime time for taking advantage of the lower interest rates available to you. These lower interest rates may come to save you hundreds of dollars per month, which can add up to thousands of dollars over the life of your loan.

Have you purchased a home ‘No Money Down’?

It has become increasingly popular for borrowers to purchase homes without putting money down at the time of purchase. Being able to finance up to 100% has allowed them to purchase this new home without completing depleting their savings. However, doing this creates either a high interest rate loan with possible private mortgage insurance, or both a first and high interest rate second mortgage. Many housing prices rise through appreciation after living in the home for several months or a year, building equity through the increased comparable sales of neighboring homes. Once equity has been built in the home, the borrower is finally in a position to refinance into a low interest rate first-mortgage from a high-interest 100% purchase loan, or even a  high-interest second mortgage loan. Refinancing your purchase loan at this point will likely dramatically decrease your monthly payments.