Refinance

When does it make sense to refinance?

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan which is called a rate and term refinance.  Refinancing is also a way to convert an adjustable loan to a fixed rate loan or to consolidate debts.  Many people have saved hundreds of dollars monthly by consolidating their credit card debt into their mortgage.  By doing this they are taking advantage of a lower interest rate, lower monthly payments and have the benefits of a tax advantage. This is called a cash out refinance.  A cash out refinance pulls equity out of your home and in turn you get cash back at closing and can do with it as you please.  Refinancing can be quite confusing so the best thing to do is consult one of our knowledgeable loan officers who can prepare a comparison sheet to see if a refinance would be beneficial to you.