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  1. FHFA Conforming Loan Limits 2019
  2. How 2018 Market Trends Will Affect Wisconsin Buyers
  3. No Money Down Home Loans Appleton Oshkosh Green Bay Wisconsin
  4. Benefits of using FHA for your home loan
  5. Benefits of being a homeowner
  6. Wisconsin local lender vs online lender
  7. Home Loan Pre-Approval
  8. No Money Down Home Loan
  9. Serve and Support Loans
  10. Debt Consolidation and Cash Out

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Refinancing and Reducing Monthly Payments

November 23, 2015

 

Many people are taking advantage of the available bank rates with Refinancing. Motivation can be either a lower interest rate, or shortening the loan length to fewer years. Additionally, refinancing is helpful to access some of the equity that has built up in the home since the purchase to pay off debt, buy a second home, vacation or invest.

Refinancing means you are going to obtain a new mortgage loan which pays off and replaces your existing home loan.

 

Today we are going to talk about cash out and rate and term.

 

Cash Out Refinance

 

A cash out refinance can help you obtain a lower rate or a shorter term (going from a 30 year to a 20 year mortgage).  It can also allow you to access the equity that has built up over the years, allowing you to be paid cash at closing, or directing funds to consolidate bills such as student loans and credit cards.

 

Cash out mortgages can also allow you to combine your first and second mortgage under certain circumstances. We will help you determine your needs and advise you on what loan is best suited for you. Consolidating bills with your mortgage can free you from large monthly minimum payments to the credit card companies, and can substantially lower those monthly expenses.  Picking the type of refinance that best for you will depend on your financial goals.

 

Rate and Term Refinance

 

A rate and term refinance can lower your interest rate, saving you money on your monthly loan payment or change your term to longer or shorter (30 year, 15 year or 10 year) depending on your needs. For example, you may have purchased your home on a 15 year mortgage term because it was affordable at the time, but you have recently retired or there has been a change in household income, and now you are interested in making that payment more affordable. By changing the term of the loan to a 30 year, you can optimize your monthly cash flow. Maybe you have been paying on your 30 year loan for some time, and it now makes sense to shorten that term to a 10 year, to pay the home off in a shorter amount of time to prepare for retirement. 

There are many reasons to refinance, and every person has different needs and situations. Here at GSF we can help you determine exactly what your immediate needs are and help you plan for your long term goals more efficiently.

 

Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
rmeyer@gogsf.com
NMLS #222688 & 1018