{"id":288,"date":"2021-08-09T07:11:51","date_gmt":"2021-08-09T07:11:51","guid":{"rendered":"https:\/\/xlnc.info\/instamortgage\/?page_id=288"},"modified":"2024-04-05T11:16:25","modified_gmt":"2024-04-05T11:16:25","slug":"refinance","status":"publish","type":"page","link":"https:\/\/xlnc.info\/instamortgage\/refinance\/","title":{"rendered":"Why should you refinance?"},"content":{"rendered":"<div class=\"section pointsdata-section\">\n<h2 class=\"screen-reader-text\">level 2 header<\/h2>\n<ul>\n<li>\n<h3>Move to a Shorter Term<\/h3>\n<p>Moving from a 30 Year Fixed to a 15 Year Fixed could be one of the best financial decisions. Even if you have a rate which is below the current market rates, moving to a 15 Year Fixed can save you hundreds or thousands of dollars. However, you should qualify and should be comfortable with a higher payment.<\/li>\n<li>\n<h3>Move to a Longer Term<\/h3>\n<p>Sometimes, it\u2019s the other way around. You got into a short-term mortgage to save on interest cost. But because of changed circumstances, you cannot service the steep payments. In that case moving from a 15 Year Fixed to a longer term like 20, 25 or 30 Year mortgage may be a better idea. You will save on your monthly payment and get the breathing room that you are looking for. Note that by <strong><a href=\"https:\/\/xlnc.info\/instamortgage\/7-reasons-why-you-should-refinance-now-even-if-you-think-you-cant\/\">refinancing<\/a><\/strong> your current mortgage, finance charges may be higher over the life of the new loan.<\/li>\n<li>\n<h3>Move From ARM to FRM<\/h3>\n<p>If you have had an Adjustable Rate Mortgage and are getting worried about the future rise in rates, moving to a Fixed-rate mortgage (FRM) may be a good idea. This is recommended if you plan to keep the mortgage for a very long time. Since the FRM rate are at a very low level, locking in a low fixed rate for the life of the loan gives you the peace of mind.<\/li>\n<li>\n<h3>Move From ARM to ARM<\/h3>\n<p>If your ARM loan is nearing the adjustment period and you are not planning to keep the loan for a long time, moving into another ARM will save you on interest cost. With 5 and 7 Year ARM pricing at least 1% lower than the fixed rate, it makes sense to save on monthly payment and interest cost by moving to an ARM from another ARM.<\/li>\n<li>\n<h3>Eliminate Mortgage Insurance (MI or PMI) Premium<\/h3>\n<p>May be your home prices have gone up or you have paid down enough on your principal or it\u2019s a combination of both.You may now have 20% equity in the house or you can bring in some cash to do that, then\u2013 it\u2019s time to get rid of the pesky mortgage insurance.<\/li>\n<li>\n<h3>Get a Cash-out Mortgage<\/h3>\n<p>If you have big expenses or major purchases, doing a cash-out refinance may be a great idea. You will however need lot of equity and cash-out refinance will have a rate higher than a regular refinance, but it may still be a much less expensive than borrowing from some where else or breaking into your retirement nest.<\/li>\n<li>\n<h3>Get a Lower Rate<\/h3>\n<p>If you had bad credit when you got the loan or have a higher rate, and you are thinking should I refinance now!\u00a0 yes\u00a0 <strong><a href=\"https:\/\/xlnc.info\/instamortgage\/when-should-i-refinance-my-mortgage\/\">refinancing<\/a> <\/strong>will help you lower the rate.<\/li>\n<\/ul>\n<\/div>\n<div class=\"getstart-section\">\n<div class=\"getstartbg text-center\">\n<div class=\"getstart-moved\">\n<div class=\"container\">\n<div class=\"title\">\n<h3>Check out our helpful guide, <span class=\"textcolor\">How to Shop Mortgage Rates Like a Pro<\/span><\/h3>\n<\/div>\n<div class=\"row py2rem justify-content-center\">\n<div class=\"col-sm-12 col-md-4\">\n<div class=\"getstart-icon\">\n<p class=\"no-class\"><a href=\"https:\/\/xlnc.info\/instamortgage\/how-to-shop-mortgage-rates-like-a-pro\/\"><span class=\"icon-box\"><img decoding=\"async\" src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/themes\/btheme\/images\/gsec-icons3.png\" alt=\"gsecicon3\" \/><\/span><\/a><\/p>\n<p class=\"no-class\">How to Shop Mortgage Rates Like a Pro<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><!-- Refinance FAQ --><\/p>\n<h2>Refinance FAQ<\/h2>\n<p><strong>Why should I refinance?<\/strong><\/p>\n<p>A mortgage is generally the largest debt most homeowners have to manage. It&#8217;s a good idea to give your personal real estate finance portfolio a check-up at least once a year. Since there are many reasons a homeowner may choose to refinance, we&#8217;ll take a look at the four most common<a href=\"https:\/\/xlnc.info\/instamortgage\/four-possible-reasons-to-refinance\/\">. <strong>Read More&#8230;<\/strong><\/a><\/p>\n<p><strong>How do I calculate the net benefit of a refinance?<\/strong><\/p>\n<p>We are going to focus on the net benefits of refinancing from the standpoint of lowering your interest rate. Although there are several reasons to refinance, lowering your mortgage rate to save on interest payments over the term of the loan is the most popular. <a href=\"https:\/\/xlnc.info\/instamortgage\/calculating-net-benefit-of-a-refinance\/\"><strong>Read More&#8230;<\/strong><\/a><\/p>\n<p><strong>Q: Why can\u2019t I just compare my current payment to the proposed payment and figure out my net benefit?<\/strong><\/p>\n<p>You could just compare the two payments if you wanted to find out your cash flow savings, but the current and proposed loans may have two different amortizations. Let\u2019s say you have a 15 year mortgage currently and you are comparing to a 30 year mortgage.<\/p>\n<p>If everything else is the same (interest rate, loan amount, etc) except for the amortization your interest savings per month would be $0 but, you are going to show a cash flow savings because of the longer amortization<\/p>\n<p><strong>If I need to do home improvements, should I refinance or get a HELOC?<\/strong><\/p>\n<p><strong>There are three variables to consider when answering this question:<\/strong><\/p>\n<p>1. Timeline<br \/>\n2. Costs or Fees to obtain the loan<br \/>\n3. Interest Rate<\/p>\n<p><strong>1. Timeline &#8211;<\/strong><\/p>\n<p>This is a key factor to look at first, and arguably the most important. Before you look at the interest rates, you need to consider your time line or the length of time you&#8217;ll be keeping your home. This will determine how long of a period you&#8217;ll need in order to pay back the borrowed money. <strong><a href=\"https:\/\/xlnc.info\/instamortgage\/should-i-refinance-or-get-a-heloc-for-home-improvements\/\">Read More.<\/a>.<\/strong><\/p>\n<p><strong>Is there such a thing as &#8220;no cost&#8221; mortgage?<\/strong><\/p>\n<p>Technically speaking, there are always costs involved with any mortgage transactions. Appraisal, inspection, underwriting, prepaid taxes, insurance, interest\u2026. the list can go on.<br \/>\nHowever, there is a way to structure a closing cost and interest rate scenario that will decrease the amount of fees, or how a borrower pays them.<br \/>\nBasically, the costs to produce the new mortgage are either financed into the loan amount, or covered by the lender in exchange for a slightly higher than market interest rate.<br \/>\nDeciding on the <a href=\"https:\/\/xlnc.info\/instamortgage\/calculating-net-benefit-of-a-refinance\/\">best option<\/a> involves weighing the difference in cost up-front vs the increased monthly payment over a set period of time.<\/p>\n<p><strong>How long do I need to wait for refinance after buying a home?<\/strong><\/p>\n<p>The rule-of-thumb is 8-12 months, but there may be exceptions. It\u2019s important to check with your lender at the time of initial application to make sure there aren\u2019t any short-term penalties for refinancing within the first year.<\/p>\n<p>Another thing to consider is the cost of refinancing. If you\u2019re watching the market and want to lock in a lower rate in the near future, it may be more cost effective to pay a discount point for a lower rate vs paying for a full refinance a few months later.<\/p>\n<p><strong>I heard that I should only refinance if I drop 1% on my mortgage, is that true?<\/strong><\/p>\n<p>Some people say \u00bd%, 1% to never. Every mortgage is different.<\/p>\n<p><strong>Do I have to refinance with my current mortgage company?<\/strong><\/p>\n<p>No, you may choose any company you wish to refinance your mortgage since the new loan will replace the old mortgage.<\/p>\n<p><strong>Is it easier to refinance with my current mortgage company?<\/strong><\/p>\n<p>Sometimes your current company can reduce the documentation that is required, but this usually comes at increased costs and interest rate. Make sure that you check to make sure you\u2019re getting the best deal.<\/p>\n<p><strong> Will I automatically qualify?<\/strong><\/p>\n<p>No, you will have to qualify for your new refinance on your  property. However certain programs will allow for reduced documentation like the FHA to FHA Streamline.<\/p>\n<p><strong> I am refinancing an FHA loan, will it benefit me to close in the beginning of the month?<\/strong><\/p>\n<p>No, in fact FHA refinances should always close at the end of the month because you are responsible for the entire month\u2019s interest.<br \/>\n<strong><\/strong><\/p>\n<p><strong>Should I be concerned about the closing date on a conventional loan refinance?<\/strong><br \/>\nNot really, however you can save a couple dollars by closing early in the month, just avoid closing on a Friday because you could be responsible for the interest on two loans over the weekend.<br \/>\n<!-- Refinance FAQ --><\/p>\n<h2 class=\"cprp_section_title\">You May Also Like:<\/h2><div class=\"cprp_items list \"><ul><li><div class=\"cprp_data\"><div class=\"cprp_title\"><a href=\"https:\/\/xlnc.info\/instamortgage\/7-reasons-why-you-should-refinance-now-even-if-you-think-you-cant\/\" title=\"7 Reasons Why You Should Refinance Now, Even If You Think You Can&#039;t\">7 Reasons Why You Should Refinance Now, Even If You Think You Can't<\/a><\/div><div class=\"cprp_percentage\">88<\/div><div class=\"cprp_excerpt\"><span class=\"cprp_excerpt_content\">If your rates are below the current market rate and you thought you couldn't refinance - think again. There are several reasons to refinance. In some cases, even if you get rates higher than your current rates you could still end up saving a ton of cash. Stay with me&hellip;<\/span><\/div><div class=\"cprp_tags\">Tags: refinance, year, mortgage, rate, arm, loan, will, save, interest, current<\/div><\/div><\/li><li><div class=\"cprp_data\"><div class=\"cprp_title\"><a href=\"https:\/\/xlnc.info\/instamortgage\/when-should-i-refinance-my-mortgage\/\" title=\"When Should I Refinance My Mortgage?\">When Should I Refinance My Mortgage?<\/a><\/div><div class=\"cprp_percentage\">80<\/div><div class=\"cprp_excerpt\"><a href=\"https:\/\/xlnc.info\/instamortgage\/when-should-i-refinance-my-mortgage\/\" title=\"When Should I Refinance My Mortgage?\"><img src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2023\/05\/Newsletter-Photos-Becca-93-150x150.png\" class=\"cprp_thumbnail\" title=\"When Should I Refinance My Mortgage?\" alt=\"When Should I Refinance My Mortgage?\" \/><\/a><span class=\"cprp_excerpt_content\">When should I refinance my mortgage? A person usually considers a refinance when they need to change the loan terms they purchased to make it easier to manage their mortgage. This article will help you understand what a refinance is and how it works.\u00a0 What is a Refinance?\u00a0 When a&hellip;<\/span><\/div><div class=\"cprp_tags\">Tags: refinance, mortgage, loan, interest, rate, current, time<\/div><\/div><\/li><li><div class=\"cprp_data\"><div class=\"cprp_title\"><a href=\"https:\/\/xlnc.info\/instamortgage\/four-possible-reasons-to-refinance\/\" title=\"Four Possible Reasons to Refinance\">Four Possible Reasons to Refinance<\/a><\/div><div class=\"cprp_percentage\">77<\/div><div class=\"cprp_excerpt\"><a href=\"https:\/\/xlnc.info\/instamortgage\/four-possible-reasons-to-refinance\/\" title=\"Four Possible Reasons to Refinance\"><img src=\"https:\/\/xlnc.info\/instamortgage\/wp-content\/uploads\/2021\/08\/jpeg-house-150x150.jpg\" class=\"cprp_thumbnail\" title=\"Four Possible Reasons to Refinance\" alt=\"Four Possible Reasons to Refinance\" \/><\/a><span class=\"cprp_excerpt_content\">Since there are many reasons a homeowner may choose to refinance, we'll take a look at the four most common. 1. Mortgage Rates Drop: Typically, the most common reason that homeowners refinance their mortgage is to secure a lower interest rate. Interest rate and loan amount determines the total cost&hellip;<\/span><\/div><div class=\"cprp_tags\">Tags: mortgage, rate, refinance, interest, loan, cost<\/div><\/div><\/li><\/ul><\/div><div style=\"clear:both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>level 2 header Move to a Shorter Term Moving from a 30 Year Fixed to a 15 Year Fixed could be one of the best financial decisions. Even if you have a rate which is below the current market rates, moving to a 15 Year Fixed can save you hundreds or thousands of dollars. However, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"templates\/refinancewithbook.php","meta":{"footnotes":""},"class_list":["post-288","page","type-page","status-publish","hentry","page-entry","loop-entry","clr"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.7 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Should I Refinance my Mortgage Now \ud83d\udcc5 InstaMortgage.com<\/title>\n<meta name=\"description\" content=\"When should I refinance my mortgage, to get a lower interest rates? should i move to a shorter term or a longer term? call us #855-644-5626\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/xlnc.info\/instamortgage\/refinance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why should you refinance?\" \/>\n<meta property=\"og:description\" content=\"When should I refinance my mortgage, to get a lower interest rates? 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