A Refinance Loan replaces your current mortgage with a new one. It may be a good option for you if:
- You want a lower interest rate; or
- You want a different loan term (number of years); or
- You want a lower monthly payment; or
- You want cash from the equity in your home.
Refinance Loan benefits and features:
Note: Benefits and features vary depending on your circumstances and the terms of your Refinance.
- Interest rate and monthly payment. You may be able to get a lower rate. Depending on the length of your loan term, a lower rate may decrease or increase your monthly payment.
- Loan term and monthly payment.
– Decreasing the length of the loan term usually results in a lower interest rate but a higher monthly payment. You’ll likely pay off your mortgage sooner because you’re paying more principal each month. The total interest you pay throughout the shorter mortgage term will typically be less.
– Increasing the loan term usually results in a lower monthly payment, but the total amount of interest you pay throughout the longer term will typically be more.
- Cash from the equity in your home. If you refinance for an amount greater than what you owe on your home, you can receive the difference in a cash payment, which you may use for home improvements to increase the value of your home or in any way you choose.
- Convert from an Adjustable-Rate Mortgage (ARM) to a Fixed-Rate Mortgage, or get an ARM with better terms.
- Other requirements and conditions apply.
CALL YOUR ACADEMY LOAN OFFICER today for more information about Refinance Loans.