You remember shopping for your home and all the careful planning and number crunching that went into it. Well, when it comes to deciding whether or not refinancing is right for you, we suggest you revert to those ways to make sure you’re not getting in over your head. In certain situations, refinancing can be just what you need to get ahead and free up some money for life’s expenditures.
Let’s start from the top. In a nutshell, refinancing your mortgage is essentially applying for a new loan with new terms and a different interest rate. With a refinance, homeowners can choose to extend their loan term to lower monthly payments, or reduce loan terms to pay a mortgage off more quickly. However, most refinancing situations involve homeowners lowering monthly mortgage payments.
From home renovations to children heading to college, we’ve heard all the reasons why homeowners consider the benefits of refinancing. There are many advantages to refinancing. Each person’s situation is different. So, we have listed the pros and cons to refinancing below. A good mortgage lender should be able to talk through your options with you and help you decide before you even start the process.
In most cases, refinancing your home opens up opportunities for yourself, your family, and your home. If you’re considering a refinance, you’ll want a local lender that can help you decide if refinancing is right for you. But regardless of who your lender is, make sure you know all you need to know about loan payment options, any prepayment penalties, what the loan will cost and how long it will take to recoup those costs.
At Chesapeake Bank, our goal is to provide the highest level of service at competitive rates. We strive to structure your real estate loan and mortgage options to fit your individual needs. Happy house hunting!