How We can Help with Refinancing Home Loans
When interest rates go down, it is the perfect time to decide if you want to refinance your mortgage. Refinancing is something you can do with any loan you have, but it is most popular with home mortgages. A lower interest rate will lower your monthly payment, and you can use the extra dollars in your pocket to make your life easier. With JTS & Co., a home refinance can be a quick and easy process.
When is Refinancing Right for You?
Refinancing is the process of obtaining a new mortgage in an effort to reduce or eliminate mortgage insurance, lower your interest rate or monthly payment, take cash out of your home for renovation or debt consolidation. You could also possibly shorten the term of your loan. Most people refinance when they have equity in their home. Equity is the difference between the amount owed to the mortgage company and the value of your home.
If you are thinking of a home loan refinance, you will want a company on your side that will walk you through every step of the way. Look for a mortgage company that has been doing mortgage loans and refinancing for decades. Starting off on the right foot is everything, especially when it comes to your money.
Most people look into refinancing the minute interest rates begin to fall. After all, why pay a higher interest rate if you do not have to? Start by thinking of your current home loan. Make sure you know what interest rate you are paying now and remember that there are advantages and disadvantages to a mortgage refinance.
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Reasons to Refinance Your Home Loan
Lower Payments or Shorten Loan Term
Refinancing may help you lower your interest rate, lower your monthly payment or shorten your loan term. If you plan on living in your home for the next several years refinancing may be an option for you. In the long run, the cost of a mortgage refinance will be paid for by the monthly savings gained. However, it is important to calculate a break-even point if you are opting to refinance.
Fixed Rate Mortgage from an Adjustable Rate Mortgage
An Adjustable Rate Mortgage (ARM) is a home loan with an interest rate that can change periodically. This means that the monthly payments can go up or down. A Fixed Rate Mortgage (FRM) has the same interest rate for the life of loan. In other words, your principle and interest won't change. A FRM is the popular choice of mortgages because it offers predictability and stability for your mortgage.
Eliminates Private Mortgage Insurance (PMI)
Low or zero down payment options can allow buyers to purchase a home with less than 20 percent down. Certain loan options require private mortgage insurance. PMI is designed to protect lenders from borrowers with a loan default risk. As the balance on a home decreases, and the value of the home itself increases, borrowers may be able to cancel their PMI with a mortgage refinance when you reach 78 to 80 percent Loan To Value (LTV) .
Cash Out a Portion of the Home's Equity
Generally, most homes will increase in value, and are therefore a great resource for extra income. Put some of that cash to good use. Purchase a vacation property, buy a new car, pay your child's tuition, perform home improvements, pay off credit card debts or take a much needed vacation.
There are also reason's why you should not refinance a home loan, They include:
• You are planning to move out of your home within the year.
• You have not made payments on time for the last 12 months.
• You are underwater on your mortgage, owing more than the property is worth.
Keep in mind there are always fees that are included in any home refinance. You will be responsible for the application fees, inspection, and closing costs, because this new loan is exactly like the home mortgage loan you have now, so it is applied for in the same way.
Remember, you will be enjoying a lower interest rate, but only if your credit is good. If you are having trouble with bills, remedy these situations first before applying for that coveted home refinance loan.
We Make Refinancing Easy
If you are ready to refinance your loan, contact our loan consultants at JTS & Co. If you plan on living in your home for the long term, refinancing is a great way to improve your monthly payments and to use the equity in your home for cash so you can reinvest that money into your property.
Three tips when refinancing:
• Your CREDIT score is perhaps the largest factor that will determine what rate you get on your new loan. Make sure your credit is in order when refinancing.
• Your home will have to undergo an appraisal for us to know its VALUE. That number will help determine how much you can borrow.
• Have all of your required DOCUMENTS. Such needed documents include,but are not limited to, proof of employment, income and assets. Some examples of these items are pay stubs, tax returns, bank statements, etc. Whether you're scanning, faxing or uploading your documents, it is important to get all your information in as soon as possible. Verifying each needed document may take some time. Therefore, having all documents ready at once could possibly lessen your wait time.
We are your mortgage loan and home loan refinance specialists. Since 1996, we have been advising thousands of clients towards their best mortgage interests. In today's world, everything should be streamlined and ready to go. We help make it that way for our clients.
If you are ready to refinance, let us determine your eligibility and put you on the road to a new mortgage loan. We will match you with a new mortgage that makes sense for your situation. What could be more stress-free than letting us secure your lowest rate, and get you a quick closing time, all with our friendly customer service? Contact us today for all of your refinance needs.