conventional mortgages

Refinancing Your Home

How to Get Started in 3 Easy Steps

1. Know Your Home Refinancing Goals

Thinking about refinancing your home? You’re not alone. A lot of families and individuals are exploring their refinancing options right now, for a host of different reasons:

  • Maybe you’re eyeing a lower interest rate and lower monthly payments
  • Maybe you’ve built up enough equity to stop paying mortgage insurance every month
  • Maybe you’re interested in a shorter-term mortgage—one that requires payments over 15 years versus 30, and saves you significantly in the long run
  • Maybe your goal is to switch from an adjustable-rate to a fixed-rate mortgage
  • Or maybe you’ve got other plans in mind…

Refinancing may help you achieve similar goals. But it makes sense to talk to a mortgage expert first. An experienced mortgage professional will take the time to understand the rationale behind your decision, and guide you accordingly.  Moreover, as a seasoned mortgage broker with multiple lender connections, we can provide you access to a diverse selection mortgage programs to best fit your individual needs.

2. Understand the Major Types of Home Refinancing

Rate-and-term refinancing is a process that replaces your existing home loan with a new loan—specifically, one that offers better rates and/or improved terms. In some cases, the new loan may allow for lower monthly payments. In others, monthly payments don’t change at all, but loan terms change (e.g. the length of the loan, so you pay significantly less interest over the life of the loan.)

Cash-out refinancing is a process that helps families convert their home equity into cash. For qualifying borrowers (those with a substantial amount of equity in their homes, among other conditions), a lump sum payout can be built into refinancing terms, and the resulting cash can be used toward home improvement projects, higher education expenses, debt consolidation, or other needs.  Depending on your needs and circumstances, the best solution may be a traditional mortgage refinance, or a home equity line of credit.  We have the resources and can provide the solution that best fits your needs.

3. Talk to an Experienced Home Loan Officer

Even if you’ve already done your refinancing homework, there’s no replacement for professional mortgage advice. A consultation with one of our mortgage professionals will guide you through all the key considerations: your short and long-term goals, different mortgage programs and their rate/term options, cash-out amounts, etc. A lot of people—even financially savvy borrowers—aren’t aware of how different strategies and mortgage products can benefit them.

Are you fully informed about your home refinancing options? Call or email Harbor Mortgage Solutions to be sure. We’re always happy to talk.