Refinance

Refinancing with Negative Equity
First, we must understand what home equity is to understand how it can be positive or negative. Home equity is the gap between the fair market vs. the total amount of liens associated with the home. Example: If a Borrower purchases a home for $100,00 with a 20% down payment and receives a mortgage for the remaining $80,000, the owner has equity of $20,000 in the house. If the market value of the house remains stable over the next two years, and $5,000 of the mortgage payments are applied to the principal of the mortgage, the owner now possesses $25,000 in ...
The Perks of Refinancing Your Home
A home is often one of the largest assets one will have in their lifetime, and it is critically important to use it to your advantage. Refinancing can potentially provide a homeowner various options that can be extremely beneficial, depending on their specific situation. Here are three main perks that most people consider when refinancing their mortgage: Lower Monthly Payment Many people consider refinancing their mortgage in an attempt to capture a lower monthly payment. Refinancing to a longer term can potentially decrease one’s monthly payment, due to the fact that the outstanding balance is being amortized based on whatever extended term ...
Refinancing Do’s and Dont’s
By Ted Lyons, Brighton Branch Manager Refinancing your home can be a great financial tool to lower your interest rate, shorten the loan term, decrease your monthly payment, or convert one sort of asset (equity in your home) into another (cash in your hands). Here are some tricks of the trade that can help you take advantage of this strategy: What are the two basic reasons I might refinance my mortgage? With some limited exceptions, most people refinance their home to lower their interest rate, shorten the term of their mortgage, or decrease the payment by extending the loan over a longer time ...
3 Advantages of Refinancing Your Home
When mortgage interest rates are very low, most mortgage experts agree that it would be an excellent time to refinance. But why should you? We’ve got the details on the advantages of refinancing your home. Reduced interest rate. This is one of the main advantages of refinancing anything, especially a mortgage. As you age and your credit history becomes more robust, you may have a higher credit score and a higher income. For this reason, you may qualify for a much better interest rate than you did when you first bought your house! Ability to take equity out of the home for ...