REFINANCING

Refinancing refers to applying for a secured loan for the purpose of replacing an existing loan secured by the same assets, or different assets. The most common consumer refinancing is for a home mortgage. Commercial refinancing also enables commercial property owners to restructure their debt as well.

1. Reduced Interest Rate.

2. Moving from an Adjustable Rate to Fixed Rate Mortgage or from Fixed Rate to Adjustable.

3. Extending the term of your loan. For example, going from a 15 year  payment plan to a 20 or 30 year payout. This would reduced your monthly payment.

4. Reduce the term of your loan. For example, going from a 30 year  payment plan to a 15 year payout. This would increase your monthly payment. You may be able to accomplish the same by paying an extra principal each month.

5. There is a legal purpose - divorce, marriage or other purpose to change ownership.

6. Estate Planning/Taxes - There may be advantages to refinancing your home and tax/estate planning. Check with your tax advisor.

7. To take "cash-out". You may have put alot of money down on your home or your home may have substantially increased in value. This is called equity. You can either take a Home Equity Loan or Home Equity Line of Credit (HELOC) - or by refinancing, perhaps a lower rate and extra cash to reinvest.

No-Closing Cost refinances: This refinance option reduces greatly upfront fees. You will pay few upfront fees to get your new mortgage loan. In fact as long as the prevailing market rate is lower than your existing rate by 1.5 percentage point or more, it is financially beneficial to refinance because there is little or no cost in doing so.

Cash-Out Refinance: This type refinance may not help you lower the monthly payment or shorter your mortgage periods. It can be used for home improvement, credit card and other debt consolidation if you qualify with your current home equity; you can refinance with a loan amount larger than your current mortgage and keep the cash difference.

Jumbo & Super Jumbo Refinance: For mortgages above $417,000 and $650,000 or $1 Million respectively, a jumbo or super jumbo refinance will be required, which may bear a slightly higher rate than a conventional mortgage refinance.

WE STRONGLY RECOMMEND YOU SHOP FOR MORTGAGES and UNDERSTAND RATES, TERMS, PRE-PAYMENT PENALTIES, BALLOON, CLOSING COSTS, FEES, APP FEES and MORE. 

Do not close a refinance without consulting an independent attorney.

Jumbo & Super Jumbo Refinance: For mortgages above $417,000 and $650,000 or $1 Million respectively, a jumbo or super jumbo refinance will be required, which may bear a slightly higher rate than a conventional mortgage refinance.

WE STRONGLY RECOMMEND YOU SHOP FOR MORTGAGES and UNDERSTAND RATES, TERMS, PRE-PAYMENT PENALTIES, BALLOON, CLOSING COSTS, FEES, APP FEES and MORE. 

Do not close a refinance without consulting an independent attorney.