Put simply, it is taking your existing mortgage and replacing it with a new mortgage. Refinancing can be a big decision, and some might not know where to start. Don’t worry, we are here to help. Reach out to one of our Loan Originators who can assist you in determining if refinancing is right for you.
A few reasons why a person might want to refinance:
Regardless of interest rate fluctuation, refinancing can provide a variety of benefits. By obtaining a lower interest rate, you could indirectly increase your cash flow, ultimately providing more flexibility with your discretionary income. What you chose to do with the extra cash is up to you, though many people that choose to refinance will use the extra money to pay off other debts or loans.
This allows you to “cash-out” on your home equity. In other words, you will receive the difference of your old loan amount minus your new loan amount.
Will refinancing benefit you financially in the long term? Yes, you will receive an increase in your discretionary income or cash in hand, but it is important to consider if refinancing is beneficial to you in the long term.
How long do you plan to live in the home? Refinancing might not be your best option if you are only looking to live in the house for a couple of years.
Are there any potential risks that need to be considered, such as penalties for paying down your mortgage? It’s a good idea to weigh all of the pros and cons when making any big decisions like refinancing.
Shelton Home Loan Originators can provide you with a full analysis of the potential benefits and costs of refinancing, and there is never a commitment for this service.
If you’re looking to buy a home, be prepared to meet a few challenges with today’s housing market. Not only is there a shortage of homes, but the available housing stock is aging. These challenges might seem discouraging but taking a look at the 2018 housing market and what options you have as a homebuyer, it is still possible to find a home to make your own.
As of 2015, 66% of the US owner-occupied housing stock was built before 1980, with around 38% built before 1970, according to the National Association of Home Builders (NAHB). Many of these homes are going to need repairs, renovations, or updates. And while there are a lot of new homes being built throughout the cotuntry, buyers should not turn away from an older home that may need some TLC. There are many renovation and repair loan options available, such as the FHA 203(K) loan or Fannie Mae’s HomeStyle® loan.