Get the Most from Refinancing your Mortgage
Many people are burdened with debt that has higher interest rates than rates offered to buyers who are financing homes today. Is it time to refinance your home loan?
While your current loan interest rate may be low, if you are paying high interest debt, remodeling, or need cash, the most affordable way to achieve your goals may very well be a refinance. Many homeowners should consider home refinancing now, as there are a lot of ways to benefit from refinancing a mortgage.
Fellowship Home Loans is here to help. We can evaluate and explain your unique financial situation to help determine whether a refinance might be the right solution for you. There are so many reasons to refinance other than just thinking about rates, including:
- Consolidate your debt into one easy payment.
- Get out of an adjustable rate and into a low fixed rate loan.
- Payoff a high interest rate sub-prime 1st and/or 2nd mortgage (combo).
- Payoff a prime rate attached adjustable home equity loan.
- Payoff your mortgage early and save BIG on your overall monthly payments and interest.
- Establish a college fund or contribute to your retirement plan.
- Get rid of an impending balloon payment or prepayment penalty on your current loan.
- Consider home improvements! Add that kitchen, garage, bedroom etc.
- Pay off those tax liens and get the government off your back.
Featured Highlights of
Home Loan Refinancing:
What is the best home refinancing option for you?
The best option for those who want stability in their home refinancing loan. Choose a fixed-rate loan if you want a regular payment over a longer period of time with no hidden surprises.
The Federal Housing Administration offers people who are refinancing a home loan with a secure and affordable option. Choose FHA financing if you:
- Want a low 30-year fixed-rate.
- Have a minimum credit score of 580
- Are bankruptcy eligible – as recently as 1 year ago, with extenuating circumstances
- Want a quick and easy approval and closing process
When you apply for FHA financing with Fellowship Home Loans, we work directly with you during the loan approval and closing to make sure you are getting home refinancing options that you need. We’ll answer any questions you might have about choosing FHA financing vs. conventional loans. As refinancing professionals, we can assist you in choosing the best option for your current situation.
These products feature a low introductory interest rate that is fixed from 1 to 10 years. After that, the home refinancing loan adjusts either annually or every six months for the rest of its duration. Choose an adjustable rate mortgage if you:
- Plan to stay in the home you’re refinancing for less than 5 to 7 years.
- Are living in a high mortgage loan interest rate area
We look at all aspects of our clients’ lives to make sure we’re doing the right thing for each and every homeowner. If it honestly looks like refinancing isn’t the best strategy, we’ll say so, unlike other home refinancing companies. We do everything possible to devise refinancing plans for our clients when it is a choice that is both logical and in their best interests.
We are available to answer any questions you may have as you consider your choices, from the simple questions, to the more complicated. As home lenders, we value every one of our clients and view them as family. That means we’ll always present all the facts, both the pros and cons, related to any option a borrower is considering.
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When is the right time to refinance my mortgage with FHL?
Deciding when to refinance requires a holistic review of several factors. Pay attention to market trends, including prevailing interest rates, and evaluate your personal financial health, especially your credit score. Using a mortgage refinance calculator can help you determine your break-even point after accounting for refinancing costs. Furthermore, it’s essential to understand the nuances between refinancing and other mortgage options like loan modifications and second mortgages.
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How does refinancing compare to a loan modification?
The core distinction is that refinancing provides you with a brand new mortgage, while a loan modification adjusts the terms of your existing one, often incorporating missed payments to help you retain your home. Note that modifications are generally considered when refinancing isn’t an option and can adversely affect your credit score.
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Is taking a second mortgage similar to refinancing?
Not quite. When you refinance, your new mortgage replaces the current one. In contrast, a second mortgage means you’ll have two separate mortgages and payments. Although second mortgages, like home equity loans or HELOCs, may have lower closing costs, they typically come with higher interest rates than a refinance. It’s essential to assess which option aligns best with your financial goals.
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Can I lower my monthly payments without opting for refinancing?
Yes, through a process known as mortgage recasting. By making a sizable lump-sum payment towards your principal, your lender can reamortize the balance, potentially lowering your monthly payments.
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How soon post-closing can I consider refinancing with FHL?
The timeline largely depends on the loan type and the investor backing your mortgage. It can range anywhere from a mere 30 days to an extended period of up to 6 months or even a year. The frequency with which you can refinance is influenced by factors like equity accumulation and the prevailing mortgage balance.
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Will the refinancing process impact my credit score?
Yes, but it’s typically a temporary effect. When refinancing, lenders initiate a hard inquiry, reviewing your credit history, which might cause a slight dip in your score. However, with consistent financial responsibility post-refinancing, like timely debt repayments and avoiding excessive new credit, your score can bounce back within months.
Explore your refinancing options with FHL
Mortgage refinancing, when done right, has the potential to reshape your financial trajectory. At Fellowship Home Loans, our commitment extends beyond transactions; we’re dedicated to making your home work for you, both as a living space and an investment. If you’re contemplating a change, eager to harness your home’s potential, or simply seeking clarity, our Fellowship Home Loans is just a call away.
Ready to learn more about Home Loan Refinancing or explore your options? Get started today!*
*All product information represented on this page is subject product guidelines and can change at anytime. It is for educational and informational purposes only and not a commitment to lend. Please contact your Fellowship Home Loans Loan Officer today to get the latest product guidelines and guidance on what loan programs fit your unique financial picture and goals.
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