|
FAQ
MORTGAGE DICTIONARY
HOMEBUYER'S GUIDE
REFINANCE GUIDE
HOMEPATH AND HOMESTYLE LOANS
You need Real Estate & mortgage professional you can trust. You need a company
that values honesty and integrity throughout the entire organization. You need top
planning specialists who give you their best consistently. You need to find strength,
stability and opportunity—especially now. You need New Century Realty & Lending!
When dealing with your real estate home financing, we are not only working with
one of your largest personal financial investments; we also are handling one of
your biggest dreams. Since we work with matters so close to the heart, we serve
you from ours.
New Century Realty & Lending can meet you where you are and help you where you are
going. Let us provide you a professional service without obstacles.
|
|
You may have visited with friends and family who refinanced their home, and wondered
if they refinanced, should you? How do you know if refinancing is the best option
to pursue?
Reasons Why
Most homeowners decide to refinance when one or more of the following favorable
conditions exist:
Your home has greatly appreciated in value:Occasionally,
certain regions of the country experience a significant rise in home prices. Refinancing
at a time like this is a good decision so that you are able to take advantage of
your home’s increased equity.
Mortgage interest rates are falling: If market rates
drop ½% to 5/8% below your current interest rate, it could be a good scenario for
you to refinance your home. In a market where interest rates are falling, two potential
benefits exist that could help lower the overall loan amount. The first option lets
homeowners shorten the terms of their repayment while still making the same or comparable
payment amounts. The other option allows homeowners to lower their monthly payments
while keeping the same or comparable repayment term. Either way, homeowners find
themselves with a way to save money on their mortgage investment.
You are early in your mortgage term: Homeowners who
are in the earlier years of their mortgage term tend to find more advantages from
refinancing. Refinancing at this point, when payments are mostly being directly
towards interest, tends to benefit homeowners more than later in the life of the
mortgage when payments are going more towards the principal than the interest.
Consider It All
Make sure that if you do decide to refinance, it is not an impulsive reaction to
one, singular factor like suddenly falling rates. To make the best decision for
you and your financial situation, you’ll want to consider all the contributing factors
such as how long you plan to stay in the home and how going through the process
would help you achieve your long-term financial goals.
Benefits
It's key to remember that refinancing starts homeowners off with a new mortgage
entirely; it takes them back to the beginning of the process. But, the benefits
of starting over with a new mortgage may be entirely worth it. Homeowners are able
to:
- Change their loan from a balloon or an adjustable rate mortgage to a fixed rate
mortgage and thereby lower the risk of a changing interest rate.
- Decrease the amount of their monthly mortgage payments by lengthening the repayment
term or changing to a lower interest rate.
- Condense the repayment term of the loan or benefit from the lower mortgage market
rates which allows homeowners to decrease the interest costs of the life of the
loan.
- Shorten the term of their loan and end up paying off the loan quicker.
- All of this frees up other funds to help consolidate other debts and put towards
other expenses such as college fund, retirement, home improvements, etc…
|
|