Your Intercap Loan Officer will help you understand the options, benefits and costs of a refinance to accomplish your goal to remodel, lower payments, or whatever you are aiming for.
Lowering your monthly mortgage payment is one of the top reasons homeowners opt for a refinance. There are a few ways a refinance can accomplish this.
Lower interest rate – A lower interest rate could lower your monthly mortgage payment by tens to hundreds of dollars. The interest rate is determined by current market rates as well as any pricing conditions at the time of the purchase. For example, your credit score, loan-to-value percentage, and debt-to-income percentage can also effect your interest rate. After owning your home for several years, you may be able to qualify for a lower interest rate even if the market rates have gone up. Your Intercap loan officer can let you know when you are in a good position to lower your interest rate and monthly mortgage payment enough to consider a refinance.
Remove mortgage insurance (MI) – Some home loans require mortgage insurance that can add an extra cost to your monthly payment. This MI requirement is usually based on a high loan-to-value percentage. Over the years your home may have appreciated enough to qualify for a refinance that doesn’t require this mortgage insurance. We can help you determine your home’s current value and how much a refinance could save you in your monthly mortgage payment.
Lengthen the loan term – If lowering your monthly mortgage payment is important for your current budget, you may be able to apply for a refinance that adds more years to your loan. For example, if you have owned your home for ten years you could refinance to a new 30-year loan with a lower monthly payment.
Each of these options have pros and cons based on overall loan costs and benefits. Your Intercap Loan Officer is committed to helping you make the best informed decision.
Find out how much you could gain from a refinance.
“Missy was amazing!! Not only did she save us over $300 month on our re-fi she was professional, on top of it and a pleasure to work it! Thanks Missy and Intercap!!”
Over the last 40 years homes appreciated across the United States at an average of 4 percent per year. Each region, county, and property are unique so you will need an appraisal to determine the current value of your home. Your mortgage payments have also contributed to lowering your principle balance. The spread between your home’s appreciation and the principle pay-down is your equity. A cash-out refinance allows you to tap into some of this equity – usually up to 80 percent.
Your Intercap loan officer can help you determine how much equity you have and how much you can take out through a cash-out refinance. You can use this money to make improvements on your home (recommended) and/or to pay down debt or pay for an upcoming expense. A cash-out refinance will likely increase your monthly mortgage payment but there are some cases where a new loan provides a better rate and terms to minimize the added costs of this type of refinance.