Refinancing is one of the simplest and most effective ways to reduce the interest payments on your home loan. With little to no switching costs or additional charges involved, refinancing enables you to reduce your payment term, lower your monthly payment*, or cash in on the equity held in your home, without risking your property.
Not sure if refinancing is right for you? Here are a few benefits you could take advantage of when you refinance with us:
For homeowners facing higher than market interest rates on their loan, it is a good idea to check out other financing options available. That’s where we come in. Refinancing offers several no-cost and low-cost incentives that can save you interest premiums and high rates. Similarly, short-term loans carry lower interest rates and allow you to pay off your loan in a much shorter amount of time. Refinancing can also help lower your monthly payments1, as well as your overall credit period. We advise you to speak with one of our Loan Officers to ensure that your refinance creates a long term benefit for you.
Easy Conversion
An Adjustable Rate Mortgage (ARM) can be a smart choice if you’re planning to move within a few years or want lower payments at the start of your loan. But if you decide to stay in your home longer, refinancing gives you the option to convert your ARM into a fixed-rate mortgage. That means your rate and monthly payment will stay the same for the rest of your loan term, giving you stability and peace of mind.
Say Goodbye to Mortgage Insurance
Refinancing can help you remove Private Mortgage Insurance (PMI) if you’ve built up at least 20% equity in your home — either by paying down your loan or through an increase in your home’s value. With an 80% loan-to-value ratio or less, you may qualify to drop PMI, which could save you hundreds of dollars each month.
Reduce Your Loan Term
If you’re planning to sell your home soon or simply do not want to take the full term of the loan to pay off your home, you might want to consider refinancing to convert your fixed-interest rate loan to a longer or shorter-term loan instead or switch to an adjustable-rate mortgage altogether. Shorter loan periods offer lower interest rates, and an ARM offers a lower payment* as well as lower interest rates.
Take Cash Out
Leveraging equity in a home is one of the most preferred ways to use cash to your advantage. The cash saved, in this regard, can be used to pay your credit card bills, medical bills, student loans, and other debts you might have and want to alleviate. Through this process of debt consolidation and cashing out, you can make only one payment every month and decrease your overall monthly outflow. You are using the equity you have built into your home to invest that money or utilize it elsewhere.
Purchase A Second Home Or Investment Property
If you’re thinking about buying a vacation home or investment property, refinancing can help you use the equity in your current home to make it happen. With rates always changing, it’s a smart time to see what options are available and put your home’s value to work for you.
* Refinancing your existing loan may result in a higher total finance charge over the life of the loan. It’s always best to speak with one of our Loan Officers to make sure refinancing truly benefits you in the long run.
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What Can a Loan Officer Help You With?
Our Loan Officers are here to advise and guide you into making the most important financial decision of your life – buying or refinancing your home. With us you can sit back, relax, and let our professionals handle it. Check out all of our loan options available to see what suits your goals.
Are you ready to open the doors to your new home, make the right investment, or give yourself newfound freedom by refinancing? Fidelity Direct Mortgage is ready to guide you every step of the way. Get started with us by clicking the button below. Still have questions? Use the Contact form to the right.
