What is refinancing?
Refinancing is when you replace your current mortgage with a new home loan. This new mortgage comes with a new term, interest rate and monthly payment that is normally more affordable in the long-run.
As a homeowner, you may qualify for a number of benefits that can yield substantial savings when you refinance your mortgage. Refinancing may allow you to tap into some of your home's equity, helping you to make the most of your finances. GMA has a variety of refinance options to fit any situation and budget.Choose from two types of refinancing options:
- Rate-and-Term Refinance- Consider this option if your financial status changes and you wish to pay your house off early or if your current interest rate is higher than the market rate.
- Cash-Out Refinance- Consider this option if you would like to take some of the equity out of your home and use it as cash for other purposes.
There are multiple reasons that you may be considering refinancing your mortgage. A few include:
- Lowering your monthly payments - Reducing your interest rate with a refinance may allow you to build more equity in your home while decreasing your monthly payments.
- A shorter loan term - When interest rates fall, homeowners have an opportunity to refinance their existing home loan for another with a significantly shorter term.
- Eliminate Private Mortgage Insurance (PMI) - If you originally purchased your home with less than 20% down, you are likely paying for private mortgage insurance. If your home value has increased enough, a refinance may lead to an end of those extra monthly payments.
- Adjust your loan type - Even if you are not looking to lower your interest rate or monthly payment, you may be looking to switch your loan type from an Adjustable-Rate to a Fixed Rate, or vice versa.
- Cash-out Refinance options - A cash-out refinance allows you to take out a new mortgage for more than you owe so you to take the difference. This can help with any upcoming large expenses. Consolidate medical or student loan debt.
Which refinance option is right for you?
Ready to unlock the equity in your home and take control of your financial future? You can get pre-qualified in as little as 10 minutes with our Digital Mortgage. Talk to your loan officer to assess which refinance option is the right one for you.
*IMPORTANT – when refinancing your existing loan, your total finance charges may be higher over the life of the loan.