Refinancing is when homeowners take out a new home loan to replace their existing one. The new loan then pays off the initial mortgage loan reducing your monthly payments or consolidating debt.

Reasons to consider refinancing:

• Your credit has improved from your original loan presuming current rates are lower.
• Your financial situation has changed. Have you changed careers or received a salary increase.
• You’re looking to consolidate your other types of debt, like another mortgage, student loans or car loans.
• You’re thinking about making home improvements or repairs that could become.
• You want to take advantage of low interest rates.

Benefits of Refinancing a Home Loan
Refinancing presents a great opportunity to get a new mortgage that’s better suited to your current lifestyle and financial position. Some of the major benefits of refinancing include:

Reduced loan terms
Refinancing will also update your loan terms. This can mean changing from a 30-year loan to a 25, 20, 15, or 10 year loan so that you can pay off the loan and own your home quicker. By reducing your loan terms, you are also lowering the amount of interest you pay the lender over the life of the loan.

Lowered monthly payments
When you finalized your initial loan terms, you agreed on a specific interest rate attached to the borrowing amount. Refinancing involves lowering that interest rate, thereby reducing the amount of money you owe on the principal.

Long-term savings
With lower monthly payments and a reduced interest rate, refinancing can bring substantial long-term savings. Plus, consolidating all your debts when you refinance can make it easier to manage your finances.

Is Refinancing Right for You?
There’s a lot to consider when it comes to refinancing. Most importantly, you should understand that it may not be an ideal option for everyone.

For more information about lowering your payments, their benefits and loan options and how it may apply to you, please contact Al Martinez direct at (847)707-5300 or submit the quick quote form.