With the record setting low interest rates that are currently available many homeowners are taking this opportunity to refinance the interest rates on their current mortgages.
You may choose to refinance to take advantage of lower interest rates. Doing so allows you to reduce your monthly payment without adding to their total mortgage. You may also choose to refinance to a shorter-term loan in order to pay off your home faster (i.e. refinancing from a 30 year loan to a 15 year loan). By shortening the term of your loan, the monthly payment goes up and the home is paid for quicker, but much less is paid in interest over the course of the loan. A third reason to refinance is to take advantage of equity gained in your home. The extra funds gained from a refinance can be used for home repairs, additions, debt consolidation, or children’s education.
At Renew Lending we can make the refinance process simple and fast. Refinancing is simply the process of paying of your existing loan with a new one. Your new loan could be for a better interest rate, a shorter/longer term, or a different amount. In fact, your new loan could be an entirely different type. For example, instead of an adjustable-rate mortgage you could opt for a fixed-rate mortgage.