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Refinance

Your Equity, Your Opportunity, Refinance with Confidence

What is Refinancing?

Refinancing a mortgage allows homeowners to replace their current loan with a new one, typically to secure a lower interest rate, reduce monthly payments, or change the loan term. This can help homeowners save money over time and achieve more favorable loan conditions. Whether you’re looking to lower your payments, access home equity, or consolidate debt, refinancing offers a way to adjust your mortgage according to your financial goals. However, it’s important to carefully consider all costs associated with refinancing, including closing costs and fees, to determine if it’s the right option for your situation.

When Is It Worth Refinancing? 7 Factors to Consider

You may be asking: Should I refinance my home? Here are 7 factors you should consider if you’re thinking about whether refinancing makes sense for you:

  1. You want to take advantage of low interest rates.
  2. You have high-interest credit card debt you are looking to pay off.
  3. The equity in your home has increased and you might be able to get rid of PMI.
  4. Your financial situation has changed. Have you changed careers or received a salary increase?
  5. You’re looking to consolidate your other types of debt, like another mortgage, student loans or car loans.
  6. You’re thinking about making home improvements or repairs.
  7. Your credit has improved, meaning you may be able to get a better rate even if rates haven’t gone down.

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Benefits of Refinancing a Home Loan

Refinancing presents a great opportunity to get a new mortgage that’s better suited to your current lifestyle and financial position. Some of the major benefits of refinancing include:

Reduced loan terms

Refinancing will also update your loan terms. This can mean moving from a 30-year loan to a 25-year loan so that you can pay off the loan and own your home quicker. By reducing your loan terms, you are also lowering the amount of interest you must pay your lender.

Lowered monthly payments

When you finalized your initial loan terms, you agreed on a specific interest rate (fixed or adjustable) attached to the borrowing amount. Refinancing involves lowering that interest rate, thereby reducing the amount of interest you will pay on the principal.

Long-term savings

With lower monthly payments and a reduced interest rate, refinancing can bring substantial long-term savings. Plus, consolidating all your debts when you refinance can make it easier to manage your finances.

What Are the Costs Associated With Refinancing?

Refinancing makes sense if you plan to stay in your current home for a long time, but the process does come with some costs. The main ones include:

Origination fees including application, points, and lender fees

Title search and insurance

Brokerage feesSetting up a new escrow accounts

Appraisal credit report

To obtain a quote on what your fees would be, contact Blue Water today.

By refinancing the consumer’s existing loan, the consumer’s total finance charges may be higher over the life of the loan.