Refinancing Your Home
Wondering if you should refinance? Refinancing can help you meet a variety of personal and financial goals. For instance, you can lower monthly payments, consolidate debt, provide money for remodeling, or even pay for a child’s (or your own) education. In addition, refinancing can completely replace your current mortgage with a new loan that provides you with a new term, rate and monthly payment.
With Vellum’s simplified, digital home loan experience, refinancing your current mortgage is now easier and faster. And you’ll never be alone on your journey – we’ll walk you through every step. Our loan officers will help you find the loan that’s best for your financial goals today and tomorrow.
So how do you know if you should refinance? Refinance can help you meet a variety of personal and financial goals such as lowering monthly payments, consolidating debt, remodeling, or even paying for a child’s (or your own) education. Refinancing will completely replace your current mortgage with a new loan that provides you with new term, rate and monthly payment.
Mortgage rates have continued to hover at two-year lows. That’s great news for homeowners across the country. Lower rates are an excellent time to evaluate your current mortgage and see if lowering your rate or changing loan products is the right financial decision for you.
With Vellum’s simplified, digital home loan experience, refinancing your current mortgage is easier and faster than ever before. And you’ll never be alone on your journey – we’ll walk you through every step, helping you find the loan that’s best for your financial goals and situation.
Why Most Homeowners Decide to Refinance
When rates are low it’s a good time to evaluate your current mortgage and see if one of the options below might be a good fit for you.
Secure a Low Interest Rate
Refinancing is a great option if you want to lower your mortgage payments. In addition, you can pay off your home loan faster. Refinancing involves swapping your existing mortgage for a new one with more favorable terms. Reducing your interest rate not only helps you save money, but it also increases the rate at which you build equity in your home. Moreover, it can decrease the size of your monthly payment.
Remove FHA Mortgage Insurance
The mortgage insurance fee on a conventional loan is lower than it is with FHA. To stop paying mortgage insurance on an FHA loan you will want to refinance into a conventional mortgage. For instance, let’s say you have paid down the loan to 78% of the value of the home. In this case, you can refinance into a conventional mortgage without having to pay mortgage insurance. If you’re loan-to-value is still pretty high you can lower your interest rate and monthly payments with an FHA streamline refinance
Reduce Your Mortgage Term
A 15-year mortgage or a 20-year mortgage is the dream home loan for many. For example, home buyers might be able to afford the much higher monthly payments. They might also want to shred their mortgage in half. In addition, they could save thousands or even tens of thousands of dollars in interest. A shorter term mortgage comes with a lower interest rate and higher payment amount. However, it builds equity faster because you pay down the principal balance quicker.
Cash-Out Refinance
Have you built up significant equity through your monthly payments and your home’s appreciation? A cash-out refinance may make sense to improve your general financial situation or the value of your home. With a cash-out refinance, you’re refinancing your mortgage for more than you currently owe. As a result, you get a portion of your equity back in cash.
From an ARM to a Fixed Rate
Reduce interest rate risk. Interest rates have been on the rise recently. However, they are still near historic lows. Refinancing could be an opportunity to lock in a low rate for the life of your mortgage. In addition, you can protect yourself against the risk that rates continue to rise. No one can predict what interest rates will do going forward. However, refinancing into a fixed-rate mortgage would remove the risk and potentially remove some anxiety as well.
Receive a Complimentary Mortgage Checkup
Over time, your financial story and life situation will change. Have a mortgage checkup done by one of our highly qualified loan officers. It is a great way to ensure that your mortgage still aligns with your current goals, even if you didn’t get your original loan with Vellum. Schedule one today!
Receive a Complimentary Mortgage Checkup
Over time, your financial and life situation will change. Therefore, having a mortgage checkup is a great way to ensure that your mortgage still aligns with your current goals, even if you didn’t get your original loan with Vellum.
With a mortgage checkup, we take a deeper look at your mortgage and current financial situation. In addition, we make sure that the current structure maximizes your tax benefits. This, as a result, provides optimal cash-flow and best suits your financial future. Here are some things our Loan Officers will review, all at no cost to you:
Your Current Interest Rate and Term
Rates are constantly changing, and as a result, the rate you initially agreed on may not be the best rate for you today. Our experts will review your current mortgage and determine whether it’s worthwhile for you to refinance.
Your Finances
Your financial situation has most likely changed since you first got your mortgage. For instance, you may be making more money now, or maybe you need to lower your monthly mortgage payments. Your Loan Officer will review your current situation and determine if there is a better loan program out there for you.
Your Life Plans
You may be considering buying a new home in the next few years, as well as having kids, buying a car and more. All of these factors can affect whether or not you should refinance your home.
Your Credit Score
Has your credit score changed since you first took on your mortgage? For instance, if your credit score has improved, you may be able to lower your monthly mortgage payment. Your Loan Officer will be able to tell you how your updated credit score will impact your payment.
Schedule Your Free Mortgage Checkup Today
Benefits of Getting a Mortgage Checkup
Obtain better loan terms as well as eliminate mortgage insurance
Consolidate high interest loans
Leverage your growing home equity
Maximize your tax benefits
Free up cash for home improvement projects
Improve monthly cash flow & overall financial well-being
Above all, have peace of mind that you have the right loan for your current situation
Let’s Get Started Financing Your Home
You’re so close to being a homeowner or refinancing to meet your financial goals. Let’s do this!
