Why should someone opt for a home mortgage refinance?
There are a number of reasons why someone would go for a home mortgage refinance. Where you end up paying very high rates of interest under the existing mortgage it would be better to refinance the loan for a lower interest rate. Another valid reason for refinancing will be to clear the mortgage payments quickly. Paying a few dollars more every month will enable you to complete you loan repayment.
Consolidating various loans into one single liability enables you to reduce the load of managing a number of deadlines and a new liability with lower interest rate helps in reducing the liability.
Advantages of Home Mortgage Refinancing:
Minimizing the amount of liability every month by means of amortization provided you are able to find a lender who offers a lower interest rate. The refinance also helps you to reduce the loan repayment term.
Refinancing options available in Colorado:
" Refinance to Fixed Rate Mortgages (FRM) - Low monthly liability without mortgage insurance or a traditional mortgage refinance. This also offers a variation of interest only mortgage with a fixed interest rate.
" Refinance to Adjustable Rate Mortgages (ARM) - They start with a low rate of interest which may increase or decrease at a later date.
" Refinance to Home Equity Lines of Credit (HELOCs) - This is a Second Mortgage with an adjustable rate of interest.
" Refinance to Home Equity Loans (HEL) - They offer fixed interest rates and these are second mortgages.
" Refinance to lower monthly payments - Flexibility to cut your payments and reduce your liability more than a fixed rate mortgage scheme.
" Refinance to Consolidate debt - Consolidate debt to break free from the hassles of maintaining a schedule of repayments and deadlines.
Some of the famous refinance schemes are as follows:
" Smart 30 - Fixed rate of interest. Interest only payment for a 30 year period. Rate of interest is at 6.65%.Annual percentage rate is 6.0826%.Maximum loan amount restrictions apply in some state and counties.
" Fixed Rate Mortgage - 30year fixed rate loan at 6.375%. Maximum loan amount restrictions apply in some state and counties.
" FHA express: 30year fixed rate loan @6.625%, the payment includes one time Mortgage Insurance Premium (MIP). Maximum loan amount restrictions apply in some state and counties.
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