If you are considering refinancing, here are a few things to think about when it comes to mortgage refinance.
- The top thing to consider is, will there be a net-tangible benefit from refinancing your current home?
- Will you be able to drop your mortgage insurance at the same time of the refinance?
- What is your main reason for wanting to refinance your mortgage? Lower payment? Make home improvements etc?
What Type Of Refinance Option Is Best For You?
With all the different refinance options, you need to do your due-diligence to make sure you’re choosing the best one. Some of the refinance options are:
- FHA Streamline Refinance
- VA Streamline Refinance
- HARP Program
- Variable-Rate Mortgage Refinance Loan
- Home-Equity Refinance Loan
- Interest-Only Home Mortgage Refinance Loan
Refinancing your mortgage is essentially paying off your current mortgage to create a new one to gain some sort of benefit or multiple benefits. There are a lot of different scenarios and options when it comes to refinancing.
Typically, if you’re eligible to refinance your loan then you should probably do it. You’ll end up gaining some sort of net-tangible benefit that you didn’t have prior to refinancing. That could result in a lower interest rate, a lower monthly payment or getting some cash in-hand to use for home improvements, pay off some debts or anything else you’d like to use it for.