Tips For When You Refinance Your Mortgage


By Chris Johnstone Mortgage

Refinance Your Mortgage

 

If you are wanting to save money on your current mortgage, refinancing might be the perfect solution!

When the market is right, mortgage refinancing can be used to help you pull equity from your home or save money by securing a lower rate, shorter term, or both, on your existing mortgage.

 

What does it mean to refinance?

Simply put, mortgage refinancing involves replacing your existing mortgage with a new one. Of course, that is just the basic premise. Refinancing your mortgage often involves just as much paperwork as obtaining your original mortgage.

 

Why should I refinance?

As we mentioned above, the main reason to refinance a mortgage loan is to take advantage of a lower rate or shorter term for your existing loan. This means you will save money by paying less for your Fullerton mortgage in the long run.

You can also refinance your mortgage to pull equity from your home. This equity can be used to pay for remodeling or upgrades to your home, which will potentially pay off with a larger return when you choose to sell your home. You could also choose to use the funds to pay for something unrelated to your home, like paying for college tuition or the down payment on an investment property.

 

What are the risks?

Mortgage refinancing does have the potential to involve additional fees similar to those you paid when you closed on your original mortgage. There are also additional risks if your home decreases significantly in value.

These risks are why it is important to consider your financial situation and the stability of the market before you decide to refinance. They are also why it is important to consult with a mortgage professional like myself or a member of my mortgage team.

Whatever your reasons for wanting to refinance, we are here to lay out all your options and to help you make the most informed decision. We understand that mortgages involve some of the most significant financial decisions you will ever make in your life, and we don’t take that lightly!

Our goal is to help all our clients achieve the American Dream of financial security, so if you are interested in learning more about how you can save money by refinancing your Fullerton mortgage, give us a call today!

  

Source: http://www.mortgagecalculator.org/helpful-advice/what-is-a-refinancing.php