What It Means To Refinance Your Mortgage


Refinancing a mortgage involves replacing your existing mortgage loan with a new one. The new loan usually has more flexible terms and conditions than the existing one. The general question of whether to refinance your mortgage or not is guided by your goals. People refinance their mortgage loans because of various reasons, as explained below:

1. Get Low-Interest Rates

Most people refinance their mortgage loans to get lower Arizona refinance rates. If your current home loan has high-interest rates, you may consider refinancing to save money. Interest rates keep on varying depending on the various economic situations. When you consider a rate and term refinance, you may also shorten the duration. However, in this case, you’ll have slightly higher monthly payments.  

2. Buy a Second Home

You can purchase a new home or investment property by refinancing your mortgage. In this case, you need at least 20% home equity. You can use a refinance break-even calculator to determine the duration of your stay in a property after refinancing to compensate for the costs incurred.  

3. Get Rid of Private Mortgage Insurance

Most mortgage loans usually come with private mortgage insurance. However, if you choose to refinance your mortgage, you’ll be able to cut your general monthly costs. The best part about refinancing here is that it’ll lower the costs regardless of your existing home loan type. For instance, refinancing an FHA home loan into a standard home loan after your home attains 20% equity will completely get rid of private mortgage insurance.  

4. High-Interest Debt Consolidation

Refinancing your mortgage can assist you in saving money and improving cash flow by consolidating high-interest personal loans and credit cards. If you improve your cash flow, you’ll soon be able to get out of debt.  

5. Pay Off Mortgage Faster

You can refinance your existing mortgage to reduce the payment duration. This will make you pay your loan faster and concentrate on other investment plans.   In conclusion, these are the top reasons for refinancing mortgages. If your loan has a shorter duration, you may also consider refinancing to increase the term and lower the monthly payments. Spire refinance rates are favorable for anyone seeking to refinance his mortgage.

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of AmeriFirst Financial Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.

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Disclaimer


Spire Financial, a division of AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 303-595-0110. © 2022. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. AmeriFirst Financial, Inc. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development or the Federal Housing Administration. Not intended for legal or financial advice. Visit https://amerifirstloan.com/pages/state-licensing for all state licenses information. Visit NMLS Consumer Access at https://www.nmlsconsumeraccess.org/

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