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WHEN TO REFINANCE
Each homeowner is unique - and we'll help you
determine if it's the right time for you to refinance. Effective refinancing
typically means lowering your current mortgage loan rate by at least one
percent. You might also want to consider changing the length of your loan or
receiving cash from the equity in your house.
If you want to increase cash flow, refinancing to
lower your monthly payment could help. Refinancing could also allow you to shorten your loan
term if you qualify.
Many people borrow against the equity in their homes and use the cash to make
improvements. Up to 90 percent of the appraised value of your home can be used
to make home improvements. The equity you can use is based on the value of the
home and what you currently owe, subject to applicable state laws. You can still
refinance if you don't have much equity -- up to 90 percent loan-to-value (LTV)
if you want to refinance your house for a new rate and term. A reappraisal of
your property may be required.
You will have closing costs associated with
refinancing your loan, including points and processing fees. You may have the
option of rolling these costs into the loan amount to reduce your cash out of
pocket.
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