If you’re looking to refinance your mortgage, Accurate Mortgage is here to help. In this guide, you’ll find out the benefits of refinancing and how Accurate Mortgage can help you get it done.

What Is Refinancing?

Refinancing refers to a financial strategy that allows you to replace your existing mortgage with a new one. When you decide to refinance your mortgage, you’ll be seeking to improve the loan’s terms, such as getting a better interest rate or payment schedule, otherwise known as the term.

Some reasons why borrowers may want to refinance can include:

• Lower your interest rate
• Consolidating high-interest consumer debt
• Improving monthly cash flow
• Shortening of a loan’s repayment period
• Get cash out for home
• Improvement projects
• Add or remove someone from the loan

The reasons listed above are often interlinked. For example, falling interest rates provide a great opportunity to lock in a better rate than you currently have. A lower interest rate can reduce your monthly payment.

As it turns out, one of the best reasons to refinance is to offer yourself more options. Refinancing is a versatile tool. Let’s look at how it works. 

How Does Refinancing Work?

If you are looking to refinance your home, it is important to understand the ins and outs of refinancing to make sure that this is the right option for you and your family.

Let’s start by understanding how refinancing works to obtain more favorable borrowing terms. First, consider your goals—lowering your fixed interest rate, reducing a payment, or switching from an adjustable-rate to a fixed-rate mortgage.

Once you have set your goals, it is important to pinpoint the right moment to apply for refinancing. Macroeconomic factors can influence interest rates, which rise and drop cyclically, therefore most borrowers wait before seeking better borrowing terms. With interest rates now back on the rise from record lows, now is the time to take advantage—before it’s too late. Our experts at Accurate Mortgage can help you understand your options.

Accurate Mortgage Refinancing Options

When consulting one of our expert Mortgage Loan Advisors, you will discover many refinancing options that might be suitable for your needs, including:

• Rate and term refinancing: One of the most popular reasons for refinancing, adjusting your rate and term allows you to adapt to the current market environment. 
• Cash-in or Cash-out refinancing: Cash-in refinancing allows you to put a lump sum down down on your home so that your new mortgage is for much less. Cash-out refinancing allows you to take equity out of the home for much-needed liquidity. 
• Consolidation: People with debt on several credit cards often consolidate into a simpler loan with better terms. What many folks don’t know is that you can also consolidate loans of varying kinds, bundling debt from your car, home, credit cards, and/or consumer debt. 

Once again, you can see that the options are seemingly endless. Whether you’d like to exchange that adjustable rate mortgage (ARM) for a lower fixed rate or put more equity into your home with a cash-in refinancing, our experts here at Accurate Mortgage will help you find the best option. 

Benefits of Refinancing

As we have seen, the most important benefit of refinancing is that it can give you access to better borrowing rates and can offer you the possibility of lower interest rates. In addition, you may be able to reduce your loan term, resulting in cash savings on interest rates and improve your household cash flow. 

While refinancing comes with many benefits, it might also reset the original loan length and reduce your home equity. Because of this, refinancing is not the best alternative for all borrowers, and you should always consult an expert lender at the Accurate Mortgage Group before getting started.

Refinancing for your future with Accurate Mortgage

Life offers opportunities and tragedies alike, both of which could benefit from mortgage refinancing. Whatever your reasons, whatever your goals, Accurate Mortgage is here to help you make the most of your most important investment. Visit us online to get your mortgage rate quote or give us a call today at (615)833-0456!

The post Mortgage Refinancing 101: What, How, and Why It Works appeared first on Accurate Mortgage Group.

When refinancing your home loan, you pay off the existing mortgage and replace it with a new one. Generally, there are two types of refinances:

Rate and term refinance: With this type of refinance, the new loan has a different rate and/or term than your current loan. This is the type of loan to do if you just want to lower your rate and payment or shorten the term, say from 30 years to 15 years.

Cash-out refinance: With a cash-out refinance, you refinance for more than you owe and keep the difference in cash. This refinance option enables you to put the equity in your home to work for you. While it is possible that you may be able to lower your rate with a cash-out refinance, that is not always the case. Instead, the main goal here is the check you’ll receive after the loan closes.

Here are the top 4 reasons you might consider refinancing your home:

Lower Your Interest Rate

A rate and term refinance can help you enjoy long-term savings, not only with a lower monthly payment, but also by reducing the amount of interest you’ll pay over the life of the loan. This can be a great idea if you are planning to stay in your home for at least a few years. If you think that you may want to sell your home in the near future, it may not be worth the cost to refinance since you may not be in the home long enough to enjoy the savings.

Pay Off High Interest Consumer Debt

If you’ve accumulated a large amount of high-interest debt, like credit cards, a cash-out refinance can consolidate those bills into a mortgage payment with a much lower rate, potentially saving you thousands of dollars and dramatically reducing your monthly outgoing cash flow.. However, it’s wise to examine your spending habits and make changes so that you don’t end up with a lot of high-interest consumer debt all over again.

Paying for Home Improvements

A cash-out refinance is a cost effective way to afford home improvements when you don’t have the cash on hand. This enables you to borrow a lot of money at once, which means expensive renovations are within reach without taking too much from your monthly budget.

Get Rid of PMI

Private Mortgage Insurance, or PMI, is a type of insurance that protects the lender in the event that the borrower defaults on the loan. Typically, you’ll have PMI if you bring less than a 20% down payment or if you have an FHA loan, which requires mortgage insurance no matter the size of your down payment. A rate and term refinance is a great way to take advantage of your home’s increase in value due to the hot housing market by refinancing into a new loan without mortgage insurance. This alone may save you hundreds a month on your payment.

Here to Help

Refinancing may or may not make financial sense for you and your family. That’s why Accurate Mortgage will look at your specific situation and advise you the same way we would a member of our own family.

To learn more about your refinancing options, contact Accurate Mortgage today.

Refinancing the easy way with Accurate Mortgage

There are many reasons why a mortgage refinance may be right for you and Accurate Mortgage is here to help you make the process as easy and as painless as possible. Visit us online to get your mortgage rate quote or give us a call today at (615) 833-0456!

The post Top Four Reasons to Refinance Your Home appeared first on Accurate Mortgage Group.