CT Mortgage
Refinancing - Why Refinance your Mortgage?
Want to refinance an
existing high interest Connecticut mortgage with the lowest mortgage
rates available? Interested in refinancing with cash out in order to
make home improvements? Need to refinance to consolidate existing
loans? We can help!
When you refinance, you pay
off your existing mortgage with a new one. Most Lenders require that
you have at least ten percent equity in your home prior to refinancing
an existing mortgage. Usually, if you are planning to maintain ownership
of your property it may make sense to refinance.
Reasons to
refinance your mortgage:
1. Interest rates may be
lower now than when you originally got your mortgage. If interest rates
are 1 percentage point below your current interest rate you should look
into refinancing.
2. Maybe when you
originally got your mortgage you took an adjustable rate mortgage, and
now with mortgage interest rates lower it's time to switch it to a fixed
rate mortgage. Fixed rate mortgages can reduce your monthly payments if
the interest rates have dropped sufficiently.
3. Perhaps you want to make
some home improvements and need cash out to finance the changes.
4. Maybe you want to change
the term of your current 30 year mortgage to a 15 year mortgage at
today's low mortgage interest rates.
What is a cash out
mortgage refinance?
A cash out mortgage
refinance is when you get a new mortgage for an amount higher than the
current debt owed on your present mortgage. With a cash out refinancing
you will receive a check after closing for the amount you have financed
above the amount required to payoff your present mortgage.
Whether to refinance or not
depends on a few factors. Today, the closing costs to refinance your
mortgage will be about the same as those of your original mortgage. You need to have an idea how long you plan to stay in
your home. If you don't plan to own your property long enough
to recover the new closing costs then it won't make good financial
sense to refinance.
If you refinance your current mortgage and lower your
interest rate by 1% and the refinancing closing costs are about 1% of
the mortgage amount you will recover your closing costs and be ahead
financially in about 18 months! |
