Mortgage Refinance: Benefits to Refinancing
What Is a Mortgage Refinance Loan?
A mortgage refinance loan is the replacement of your existing mortgage with a new home loan or placing a mortgage lien on a property owned free and clear that may have different or more favorable terms, such as a shorter repayment term, a lower mortgage interest rate, or lower monthly payments (total finance charges may be higher over the life of the loan).
Mortgage refinancing is a term that intimidates some homeowners, but don’t worry — the CrossCountry Mortgage team is here to educate you and provide the necessary support so you can meet your financial goals. Refinancing often results in a more favorable financial situation.
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Lowering Your Interest Rate
Obtaining a lower interest rate can help you save money over the life of the loan. Home mortgage refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run, as total finance charges may be higher over the life of the loan.
Fees and interest rates also need to be considered when calculating if your home mortgage refinance will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.
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Changing Your Loan Term
Changing the term on a mortgage loan (for example, from a 30-year to 15-year mortgage) can help you achieve specific financial goals. With a shorter term, you’ll pay less interest over the life of your loan. You may also be able to extend your repayment term if needed.