Refinancing Your Home
If you currently have a mortgage but still require funds you don’t have, refinancing your mortgage could be a strategy worth considering. Depending on your particular circumstances, you might select from various refinancing terms. Whether you are a resident of Martinsburg, Charles Town, Harpers Ferry, or another town in West Virginia, refinancing could be the perfect solution for you.
What Is Refinancing?
You will need to start with a general understanding of what refinancing is and what it might mean for you. Basically, to refinance a mortgage is to apply for an additional loan. Once you obtain the second mortgage, you can pay off the initial home loan.
Since the new loan has its own terms that are independent from the first loan, you must supply the same specific documents and relevant details you would for any loan. Be prepared to offer proof of your employment records, credit score, income, and payment history. Also, you will likely be asked to provide documentation of your assets, including stocks, retirement savings, and other savings accounts. You should also be prepared to have your home appraised, so a potential lender can determine the value of your home.
The Advantages of Refinancing
One of the top reasons that many people opt for refinancing is to get a lower mortgage rate. A second mortgage may also offer you a more stable monthly payment rate than the first one. If you presently have an adjustable rate mortgage (ARM), but you would benefit more from the stability that a fixed rate mortgage can offer, refinancing may be right the right choice.
Another benefit of refinancing is that it enables you to consolidate more than one mortgage. This relieves some of the pressure on you, allowing you to focus on a single, more stable mortgage payment.
If you refinance your home, you could also be subject to lower interest rates. It is not unusual for someone to refinance after discovering that interest rates are now lower than when the first mortgage was secured.
Cashing Out via Refinancing
Another compelling reason to refinance is to cash out on the equity of your property. You are only free to utilize this strategy if you have positive equity, which means the market value of your home is higher than the balance of your current mortgage.
What to Know Before You Refinance
If you wish to refinance, find out whether the new mortgage comes with a fee attached. You should also establish whether you will be required to pay a prepayment charge if you are refinancing to pay off your existing mortgage.
Talk to Us About Refinancing Your Home
When you wish to refinance your first mortgage, the team at Homespire Mortgage can assist. We offer lending services to the residents of Martinsburg as well as all of West Virginia. Speak with one of our representatives today, so we can help you explore refinancing strategies to meet your needs.
Contact us today for all your home loan and refinancing needs!