Hey there savvy homeowners! 🚀 Why wait for the Fed to make a move? We are not waiting around – we are taking action NOW to save you money! The Fed hasn't made any promises about lowering rates – but guess what? We have! Introducing our exclusive rate special on conventional rate & term refinances!
Now through March 2024 - take advantage of our exclusive low rates on conventional rate & term refinances. Don't miss out on lowering your monthly payment—seize the opportunity now!
Highlights:
- Potentially save hundreds of dollars each month with a lower rate
- Lower your loan term to pay off your mortgage faster
- Defer a payment - if your closing is timed correctly, and you do not make the payment in the month you are closing, it is possible to add that into the new loan.
- Receive a refund of your escrow account balance
- Option to waive escrow for up to 95% loan to value - keep more of your cash!
- Fast turn times - close in 20 days or less
- Run a credit check to determine your credit score in a way that won’t harm your FICO
- Eliminate private mortgage insurance
- Consolidate your student loans with a rate & term refinance
- Valid for any note rate, any occupancy
How rate and term refinances work
When opting for a mortgage refinance, you're essentially acquiring a new loan with revised terms to settle the original one. Among the various types of refinance loans available, a rate and term refinance—also recognized as a traditional or no cash-out refinance—offers the flexibility to adjust the interest rate and loan term without altering the principal balance.
Homeowners typically pursue a rate and term refinance to accomplish various objectives:
- Secure a Lower Mortgage Rate: Evaluate your eligibility for a reduced refinance rate. This not only lowers your monthly payment but also results in savings on interest expenses.
- Adjust the Loan Term: Shifting to a shorter loan term reduces overall interest payments and accelerates debt repayment, albeit with a higher monthly installment. Conversely, extending the loan term may decrease monthly payments but might increase total interest costs, offering relief for those facing financial difficulties and aiming to avoid foreclosure.
- Switch Loan Types: If your adjustable-rate mortgage approaches the end of its initial rate period, transitioning to a fixed-rate loan provides payment predictability and stability.
- Eliminate Mortgage Insurance: For conventional mortgages, eliminating private mortgage insurance (PMI) becomes viable once you achieve at least 20% equity in your home, particularly advantageous if your home's value has recently appreciated. FHA or USDA loan holders can also discard mortgage insurance by refinancing into a conventional loan, provided there is sufficient equity.
Exploring a rate and term refinance empowers homeowners with the opportunity to optimize their mortgage terms and financial circumstances.
Benefits of a rate and term refinance
Exploring a rate and term refinance can provide several benefits, assisting you in:
- Accelerating Equity Growth and Early Mortgage Repayment: Homeowners often opt for a shorter loan term, such as transitioning from a 30-year to a 15-year mortgage, to expedite the payoff timeline. This not only facilitates quicker equity buildup but also aids in achieving debt-free status sooner.
- Realizing Interest Savings: By shortening the loan term, securing a reduced interest rate, or a combination of both, you stand to achieve substantial savings on total interest costs throughout the loan's duration.
- Reducing Monthly Mortgage Payments: Whether through securing a lower interest rate or extending the loan term, a rate and term refinance can potentially lower your monthly mortgage payment. This newfound flexibility can free up room in your budget for other financial priorities.
- Enhancing Payment Predictability: Adjustable-rate mortgages introduce uncertainty with potential interest rate changes. If you currently hold an ARM, transitioning to a fixed-rate loan through refinancing ensures a more stable and predictable payment structure, shielding you from rate increases and higher monthly payments.
Should you get a rate and term refinance?
Opting for rate and term refinancing proves beneficial for homeowners aiming to capitalize on reduced interest rates without requiring additional funds at closing. According to mortgage data firm Black Knight, pursuing a refinance becomes advantageous when you can trim a minimum of 0.75% off your original interest rate or decrease your monthly payment.
However, it's not solely about the shift in your monthly payment. Refinancing a home incurs costs, usually totaling around $5,000. Thus, it becomes essential to calculate your break-even point before proceeding with the decision.