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


V.I.P. Mortgage, Inc. DBA Spire Financial does Business in Accordance with Federal Fair Lending Laws. NMLS ID 145502. For state specific licensing, visit www.vipmtginc.com/national-licenses/. V.I.P. Mortgage, Inc. is not acting on behalf of or at the direction of the FHA/HUD or the Federal Government. This product or service has not been approved or endorsed by any governmental agency, and this offer is not being made by any agency of the government. V.I.P. Mortgage, Inc. is approved to participate in FHA programs but the products and services performed by V.I.P. Mortgage, Inc. are not coming directly from HUD or FHA. Information, rates, and programs are subject to change without 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 may apply. This is not an offer to enter into an agreement. Not all customers will qualify.

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