Refinancing your home can save you thousands of dollars while modifying terms that better suit your unique financial needs. However, the task of evaluating refinance options, and determining whether or not it’s the right move for you, can be daunting.
The mortgage bankers at First Ohio Home Finance, Inc. are ready to help simplify the refinance process and offer a customized solution that makes the most sense for your financial goals.
What is a Mortgage Refinance?
Refinancing a home involves taking out a new loan to pay off your original mortgage and replacing it with a loan more beneficial to you. Refinancing benefits can include lower interest rates, overall savings, shortened mortgage terms, and debt consolidation. The refinancing process requires completing a new loan application and sometimes a home appraisal and inspection. During the approval process, lenders examine the homeowner’s debt, income, job history, and credit score.
- Benefit from low-interest rates. One of the most commons reasons for a refinance is to take advantage of declining interest rates that result in lower monthly payments. However, homeowners need to ensure that the savings offset the new closing costs. Check out our refinance calculator to learn more.
- Modify the length of your mortgage terms. Lengthening or shortening mortgage terms may be beneficial, depending on your financial situation. Lengthier mortgage terms will lower your monthly payments but typically raise interest rates. With shorter mortgage terms, monthly payments will increase, but you’ll typically have lower interest rates.
- Replace an adjustable-rate mortgage. Switching to a fixed-rate mortgage is often favorable for borrowers. If interest rates are historically low, locking in a fixed rate helps avoid unforeseen interest rate increases in the future. Fixed rates tend to benefit those who plan to be in their home long term.
- Profit from an increased credit score. Demonstrating that you can pay off your loans promptly is imperative when determining your initial interest rate. Therefore, if your credit score has improved an adequate amount, you’re likely to qualify for new, lower interest rates.
It’s important to determine your potential overall savings and mortgage break-even point when deciding if a refinance the right move for you. Our First Home Mortgage bankers are ready to walk you through the entire refinance process. Integrity is a First Home core value—we will never recommend a plan that isn’t in the best interest of you and your future.
Get in touch with our team today to discuss refinancing your current mortgage.