Refinancing may seem like a daunting task, but our team at AnnieMac Home Mortgage will ensure that you understand what it is and how it works.
A refinance may occur when a person reviews the terms of their mortgage and needs a new agreement. They may want to lower their current interest rate, change their payment dates, or modify their loan terms to reflect the current economy. A refinance is when a new loan replaces the loan that you are currently paying. Depending on the loan type you have, you may be able to get a new interest rate, new repayment term, or a different principal balance.
With this type of refinancing, you can change the current interest rate or the payment term. Increasing the payment term will allow you to pay a smaller payment per month while choosing to make larger payments will help you save money on interest. This type of refinancing will not change the amount of money you originally borrowed.
This is when you take out a new loan in order to withdraw cash out of your home’s equity. Your home’s equity is the amount of money you have deposited toward your mortgage payment, plus the value your home has appreciated over time. This type of refinancing lets the borrower withdraw that equity and use it to pay off other types of debt, do home improvements or take a dream vacation.
AnnieMac Home Mortgage strives to offer the best service for our borrowers and are here to help you achieve your goal of homeownership.
AnnieMac Home Mortgage is not a financial advisor. The ideas outlined above are for informational purposes only, are not intended as investment or financial advice, and should not be construed as such. Consult a financial advisor before making important personal financial decisions