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Refinancing

Homeowners refinance not just to take advantage of low rates, but to reduce their mortgage, pay off their mortgage earlier, or help pay off debts.

If the rate you pay on your existing mortgage is higher than current interest rates, you may save money by refinancing.  You may benefit from refinancing if:

  • You plan on living in your home for a number of years.
  • You've built up considerable equity in your home.

Refinancing makes sense for many reasons:

  1. Lower your monthly payments.  If interest rates are lower than when you bought your house, refinancing may lower your monthly payment over the life of the loan.
  2. Stabilize your monthly payments.  Converting from an adjustable to a fixed rate mortgage may keep your monthly payments from changing over time.
  3. Consolidate debt.  If you've built equity in your home, you may use refinancing to consolidate your personal debt into one payment.
  4. Convert equity/cash out.  If you've built up considerable equity in your home, you may be eligible to refinance your existing mortgage to a larger loan amount.  This would provide you additional cash that could be used for debt consolidation, home improvement, or for personal use.  The interest paid on your "cash out" refinance, unlike personal loans, could be tax deductible (consult your tax advisor).
  5. Reduce the length of your mortgage.  Reducing the number of years on your existing mortgage often provides a significant reduction in interest costs over the life of the loan.  Although this may mean higher monthly payments, you will own your home faster and become free of mortgage debt quicker.

All loans subject to credit approval, verification and collateral evaluation.