Refinancing is most popular when interest rates are lower — this translates to lower mortgage loan rates, which in turn translates to substantially lower monthly payments as well as lower interest expenses. If your mortgage rate is higher than current rates, you may save money by refinancing. Refinancing can also be helpful in paying other debts, lowering payments, or liquidating your home equity. Getting your mortgage refinancing loan involves many of the same steps and expenses as your original loan, so you should contact a trusted mortgage company like Severino Financial who can get you the best rates & programs in the loan marketplace.
Types of Refinancing
Cash-Out Refinance: With a cash-out refinance, you can get more than the amount owed on your current mortgage. The extra money can be used in many ways, including paying off other outstanding loans. This can be quite helpful, since the interest rate on a refinance is typically lower than rates on other debts such as credit cards or car loans. As opposed to a personal loan, the interest on a cash-out refinance may be tax deductible. Again, consult a tax advisor to determine if you may qualify for those deductions.
Bad Credit Refinance: Bad credit refinancing may be an option if you have equity in your home. It can help you to reduce your interest rate, consolidate your debt, or change the term of your loan. Bad credit loan refinancing will allow you to incorporate your debt into the amount owed. Please consult with a financial advisor on whether refinancing with bad credit is right for you.