Thinking of refinancing your mortgage? Now may be a great time. There are many refinancing options available to suit your individual needs so that you may not have to feel overwhelmed with monthly expenses anymore. Our mortgage loan officers are here to help ease your worries, so please give us a call.
Refinancing Your Home Mortgage
One of the main reasons to restructure your mortgage loan is to reduce the interest expense. If the interest rate on your home is too high, you could choose to refinance your home in order to get a better rate which may help you to save money every month. You may even refinance to get a different type of home loan. For example, if you had a fixed-rate mortgage and want to change it to an adjustable-rate mortgage, one of the ways to do that would be to refinance.
There are many types of refinancing for which you might be approved. If you already have a FHA mortgage and you are looking to refinance your home, FHA Streamline Refinancing may be the fastest and easiest way to go. The most beneficial feature of this loan is that it may allow you to refinance according to the original purchase price of the home instead of what the home is now worth. That means that even though you owe more than what your home is worth, you may still be eligible for a refinance of the amount of your purchase price. This may be an option for borrowers where their equity is lower than the current loan balance. Even if you owe well above what your home would now be appraised for, when refinancing in Massachusetts, the FHA may refinance according to the original purchase price.
Owing More Than Your Home is Worth
There are other refinancing options available for homeowners who owe more on their home than what it is worth. If you qualify as having financial hardships or if your mortgage is in danger of default, there are other home loan programs that may be available. When refinancing in Massachusetts, you may restructure your loan through the Home Affordable Refinancing Program. HARP focuses on creating a more stable and affordable mortgage for the homeowner. This program is through Fannie Mae and Freddie Mac, and is designed to provide relief for eligible homeowners.
Getting a lower interest rate for monthly payments isn’t the only reason to refinance your home loans. You may be eligible for credit based on your equity in your home. Whether you need to pay for a child’s semester at college or just need some extra spending money, cash-out refinancing may turn your equity into readily available cash. With this type of refinancing, you may be eligible to refinance your mortgage loans for more than what you owe. Then, whatever is left over is yours to spend as you wish.
There are so many reasons why taking advantage of refinancing might be right for you. When refinancing in Massachusetts, you may use your home’s equity as an option for financial requirements. Per applicable laws, Drew Mortgage is required to ensure that your refinance provides you a “Net Tangible Benefit” such as a lower interest rate, reduced loan term, cash-out for a bona fide personal financial emergency, or other matter that provides an actual benefit to you.
Thinking of refinancing? Call to see if we can save you money on your monthly payment. Make certain you will have researched the lowest payment and lowest rate possible by choosing Drew Mortgage Associates. Call us today to find out about all the programs that Drew Mortgage can offer. There is no obligation to refinance.