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Things You Need to Know About Refinancing

Aug 04, 2016 (0) comment

Mortgage refinancing can be the best decision to improve your financial condition. You may have a mortgage loan and want to lower your rate of interest. Refinancing can improve your interest rate and can save you a lot of money over the course of the loan’s term. You should always take an expert’s advice on refinancing who will analyze your financial condition and provide you with the most suitable refinancing option that can stabilize your financial situation.

What is Refinancing?

Refinancing is a process of replacing an existing loan with a new loan. Generally, people refinance their mortgage loan to lower their interest rate, to reduce the term of loan, or to change from an adjustable rate mortgage to a fixed rate mortgage.

Why Should You Refinance?

Refinance To a Lower Mortgage Rate

A small reduction in your mortgage rate can help you save money in the long run. If you’re planning to stay in your home for a long period of time, you may want to refinance to a lower mortgage rate. This can help reduce your monthly payment.

Refinance From An Adjustable-Rate Mortgage To A Fixed-Rate Mortgage

Adjustable Rate Mortgages (ARM’s) work best when mortgage rates are low. However, as rates increase, ARM’s become a burden. Refinancing to a fixed-rate mortgage is the most suitable thing to do. If you’re planning to stay in your home for an extended period of time, refinancing your mortgage loan to a fixed-rate mortgage make sense and will give you peace of mind. 

Refinance To Pay Off Your Mortgage Early

If you want to pay off your home loan quickly, refinancing your home loan can help. Instead of refinancing your loan into a 30-year mortgage, refinancing to a 10, 15, or 20-year fixed mortgage can help you pay off your mortgage loan as early as possible. Many lenders give you an option of paying more on your principal every month so that you can pay back your mortgage loan before the term ends.

Important Things To Remember:
Refinancing Includes Costs

There are some costs involved in refinancing your mortgage loan. Refinancing isn’t free. Here are some of the areas where you will have to pay fees for refinancing. 

  • Appraisal
  • Processing
  • Underwriting
  • Credit Report

If you want to refinance your loan and are looking for a mortgage lender in MA, Drew Mortgage Associates, Inc. can help! Drew Mortgage Associates, Inc. is a Boston mortgage lender that can help provide mortgage loans or refinance your loan to a lower interest rate or reduced term. Our professional home loan officers will suggest the best mortgage loan that suits your current financial situation. We will help you throughout the home loan process and assist you while filling out the mortgage loan application form. What are you waiting for? Call Drew Mortgage Associates, Inc. today!

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