Reaching Your Financial Goals With A Mortgage Refinance

Are you a current property owner who is interested in refinancing your home loan in order to help improve your financial situation? A mortgage refinance involves replacing your existing home loan with a new one, and may help you save money while maintaining an element of flexibility. When it comes to refinancing your mortgage, the two major options are a cash-out refinance and a rate and term refinance. If you are located in the areas of West Palm Beach, St. Pierce, or Tampa Bay, Florida, and want to determine the best refinance option for your situation, CTC Mortgage is here to help. Continue reading to learn more about your mortgage refinance options.

What Is A Cash-Out Refinance?

A cash-out refinance involves a borrower refinancing their home with a new mortgage that’s worth a larger sum than is currently owed, with the borrower getting to keep the cash difference. Typically, borrowers that opt for a cash-out refinance use the additional funds from the loan to make home renovations and improvements, to help consolidate their debt, or for a variety of other financial needs. Some important advantages of getting a cash-out refinance include increasing the property’s value with renovations, obtaining lower interest rates, and the possibility of receiving certain tax benefits. It is important to note that a borrower will still be required to pay for closing costs and private mortgage insurance with a cash-out refinance, although in some cases it may be possible to combine the refinance closing costs into the loan value.

How Does A Rate And Term Refinance Work?

In a rate and term refinance, a borrower’s existing mortgage is replaced with a new one, and the refinanced loan generally comes with updated and more favorable terms, and a lower interest rate, ultimately saving the borrower more money over time. The principal loan balance will remain the same with a rate and term refinance, and there is no cash payout involved. There are several reasons people choose to obtain a rate and term refinance, including eliminating private mortgage insurance costs, changing the type of loan they have, taking advantage of lower interest rates to decrease mortgage payments, and changing the term of a loan. A borrower has the opportunity to refinance their mortgage with a rate and term refinance as soon as six months after their original mortgage starts.

Get Assistance With Your Mortgage Refinance

There can be several advantages to refinancing your mortgage and it can be an important step to help you achieve your financial goals. If you need help determining the most suitable refinance option for your situation in West Palm Beach, St. Pierce, or Tampa Bay, Florida, contact CTC Mortgage today for a consultation.

The post Mortgage Refinance Information appeared first on CTC Mortgage.