Many first-time homebuyers have heard the term “refinance” but many are unfamiliar with mortgage refinancing and what it means to refinance a mortgage. So in today’s article from lending professional and loan officer Sonia Krietz, we’ll explore the question of what is refinancing , along with how refinancing works and how it can benefit you as a homeowner.
What is Refinancing?
The process of getting a new mortgage to take the place of your original home loan is called refinancing. Refinancing is usually done in order to obtain a better loan term and interest rate.
When you perform a refinance on a home loan, the first loan is paid off, allowing the second loan to take its place.
For borrowers with a good FICO score, refinancing be a very effective technique for converting your variable loan rate to a fixed rate. You can also obtain a lower interest rate.
What are the Benefits of Refinancing?
The primary benefit of refinancing is the ability to reduce your interest rate. A lower interest rate can have a profound effect on monthly payments, potentially allowing you to save hundreds of dollars annually.
Refinancing also provides you with an opportunity to increase your loan amount, taking out a lump sum from your equity to perform home improvements, pay down high interest credit card bills and so on.
You can also alter the term or length of your home loan, going from a 30-year to a 15-year loan, for instance.
Let Loan Officer Sonia Krietz Help With Your Mortgage Modification
If you’re ready to get a home loan, wish to refinance a mortgage or need help with credit repair services before you obtain a new loan, contact lending professional and loan officer Sonia Krietz, with Security National Mortgage Company. In addition to offering mortgage loan lending services, Sonia can also guide you through the process of repairing your credit and maximizing your FICO score so you can increase your chances of not only getting approved for a mortgage, but you may also be eligible for a lower interest rate!
Readers may also wish to learn more about the difference between pre-qualification and pre-approval for a mortgage loan, along with what factors impact interest rates.
Also be sure to read Sonia’s related article to learn more about home loan refinancing and how refinancing works.
You may wish to complete the pre-application form and Sonia will be in touch to help you proceed through the process. If you have any questions or concerns, you can also contact Sonia Krietz by phone at 916.385.9716.