Lower Rates, Lower Payments
A classic reason to refinance is to get cash out. Whether it be to add an extra room or buy a second home, a cash out refinance could be just the right move to make. When you lower your interest rate, you can get a cash out refinance as well. This means it’s important to keep an eye on the market and make sure if you are refinancing you are doing so when the rates are lower than when you initially financed the loan. This also comes into play if you want to consolidate your debt. If you have multiple high interest credit cards, refinancing can help to pay off a large amount of debt with a lower interest rate. Also if you have an FHA loan, refinancing can help to lower your payments on private monthly insurance as that insurance is mandatory with those loans.
You Can Change The Details Of The Loan
If your financial situation improved since you opened the loan, you could refinance and get a better interest rate. You can also extend or shorten the term of the loan for any number of reasons, and it is a good idea if you’ve paid back a decent portion of the loan. If you are paying on an interest only loan and are facing a recast, refinancing is a good route to go. On the other hand, if you’ve accumulated some equity and want to pay off some interest you can do that as well. If there’s more than one person on the loan, and you want to take them off for whatever reason, refinancing can do that as well. This could be beneficial to the borrower especially if it lowers the interest rate because they have better finances.
No matter the reason you are considering a refinance, who you choose to work with is going to affect the successfulness of the refinance. When working with a local lender, the best thing they can offer is to make you feel like more than just a number, and that’s incredibly helpful when making big financial decisions.
They have a smaller operation so that means they will have a better idea of your particular situation, and work with you throughout the loan process one on one. Bigger banks may not want to spend the time answering questions or helping out with paperwork, but a smaller scale lender has the time and is willing to do so to gain you as a client.
Local lenders are great for many reasons but since they are working on a smaller scale, they may not be accessible 24/7 like a bigger bank. They also may not be as popular as a bigger bank so figuring out the best local lender to work with will depend on word of mouth or lots of research.
Our Team Is Here For You
We are here to help you with any questions or concerns you have when it comes to deciding your refinance options so don’t hesitate to reach out to the team at North Star Mortgage Network today!