Completing a Mortgage Refinance can be a smart way to improve for your financial situation. Depending on your circumstances you may want to undergo mortgage
refinancing for any of the following reasons:
Mortgage Refinance To Lower Your Mortgage Rate & Payment
Even a small reduction in your mortgage rate can have a significant impact in the long-run. Refinancing to lower your monthly payment frees up cash flow, so you can manage
your money more effectively. Furthermore, if you plan to stay in your home for a long time, you may want to mortgage refinance and consider buying down your rate to reduce your monthly payment. If you have equity in your home, home loan refinancing could enable you to lower your mortgage payment
Mortgage Refinance To Consolidate Debt
If you have debt outside of your mortgage and you have equity in your home, it's time to refinance your home loan. You are likely paying a much higher interest rate on credit cards and auto loans, and by mortgage refinancing you could roll all of these debts into one tax deductible loan. Credit card interest rates can be as high as 25%. Refinancing your home to pay off and consolidate debt under one low mortgage rate is a smart maneuver. A well structured home refinance could save you a great deal of money.
Mortgage Refinance To Get Cash Out Of Your Home
Completing a mortgage refinance can get you cash out of your home for a variety of purposes, including education expenses, vacations, other investments, home improvements and more. Mortgage refinancing is a much better option than using credit cards or personal loans.
Mortgage Refinance To Pay off Your Home Loan Faster
A mortgage refinance can be structured to pay off your home quicker. Instead of refinancing into a typical 30 year mortgage, you could get a 20, 15, or even 10 year fixed so you pay it off quicker. Also, many home refinance loans give you the option of paying more on your principal every month so you can pay down your home loan fast as well. Refinancing allows you to move into any type of mortgage loan.
Mortgage Refinance To Move To A Fixed Rate From An ARM
Adjustable Rate Mortgages (ARMs) are great when mortgage rates are low. However, as rates increase that ARM quickly becomes a significant burden. That's when it is time to consider mortgage refinancing into a fixed rate loan. Especially if you plan on staying in your home for a few years, a refinancing your mortgage makes a great deal of sense. Refinancing into a stable fixed rate may give you peace of mind. More on fixed rate mortgages.
Mortgage Refinance To Eliminate Private Mortgage Insurance (PMI)
If you were unable to make a down payment of at least 20% when you first obtained your mortgage loan, you may be paying PMI. If your house has appreciated and/or you have paid down your existing mortgage, you may be able to mortgage refinance your home to eliminate your monthly PMI payment. Along with possibly lowering your rate, a mortgage refinance could reduce your monthly mortgage payment considerably.
The interest rates, payment amounts, Annual Percentage Rates ("APR"), and lender fees & points shown above are based upon the following parameters:
$260,000 loan amount (Jumbo information based upon $420,000 loan amount)
80% loan-to-value ("LTV") or less
20% or greater down payment
Fully documented income, assets and liabilities
Single family residence
740 credit score
30-day lock period
Property located in Massachusetts
Adjustable Rate Mortgages
Adjustable Rate Mortgage ("ARM") products have an initial fixed rate period of
3, 5, 7, or 10 years, and a full loan term of 30 years (360 months). After the initial
fixed period has expired, the interest rate will be adjusted annually based upon an index
plus a margin. An interest rate "cap" limits how high the interest rate may rise
at each adjustment. Interest rate caps differ by ARM product.
Depending on market conditions at the time you lock your Initial Interest Rate, as well as
the point option you select, your Initial Interest Rate may not be based on the Index used
to make later adjustments. Instead, your Initial Interest Rate may have a discount or
premium. A "premium" occurs when the Initial Interest Rate is more than the sum of
the Index plus Margin. A "discount" occurs when the Initial Interest Rate is less
than the sum of the Index plus Margin. Your interest rate may not move in the same direction
as the Index. For example, if your loan has a premium, your interest rate may decline on the
First Rate Change Date even if the Index remains the same or increases. If you choose a rate
lock option that provides for a floating rate, your Initial Interest Rate at closing may be
different from the interest rate in effect at the time you apply for your loan. The amount
of the premium or discount may change as a result.
Example: Let's assume you have an ARM loan that is fixed for the 1st five years; a loan
amount of $10,000.00; a loan term of 30 years (360 months); an Initial Interest Rate of
6.00%; a margin of 2.25%; an initial interest rate cap of 5.00%; an annual cap of 2.00%;
and, a lifetime cap of 5.00%. Under these assumptions, your initial loan payment for
principal and interest will be $59.96. At your first adjustment your interest rate cannot
increase above 11.00% or decrease below 2.25% (the margin). If your interest rate reached
the lifetime maximum cap of 11.00% at the first adjustment, your payment would reach a
maximum amount of $91.20 after five years.
To see what your payments would have been during the period shown above, divide your loan
amount by $10,000; then multiply the monthly payment by that amount. For example, the
monthly payment for a loan amount of $90,000 would be; $90,000 divided by $10,000 = 9;
9 x $59.96 = $539.64.
State and other conditions and restrictions may apply.
For a more personalized rate quote, please complete the fields under "Mortgage Rate