Mortgage Refinance: Benefits to Refinancing
What is a mortgage refinance loan?
A mortgage refinance loan is the replacement of your existing mortgage with a new home loan or placing a mortgage lien on a property owned free and clear that may have different or more favorable terms, such as a shorter repayment term, a lower mortgage rate, or lower monthly payments (total finance charges may be higher over the life of the loan).
Mortgage refinancing is a term that intimidates some homeowners, but don’t worry — the CrossCountry Mortgage team is here to educate you and provide the necessary support so you can meet your financial goals. Refinancing often results in a more favorable financial situation.
6 benefits of refinancing a home loan
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1
Lowering your interest rate
Obtaining a lower mortgage interest rate can help you save money over the life of the loan. Home mortgage refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run, as total finance charges may be higher over the life of the loan.
Fees and interest rates also need to be considered when calculating if your home mortgage refinance will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.
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2
Changing your loan term
Changing the term on a mortgage loan (for example, from a 30-year to 15-year mortgage) can help you achieve specific financial goals. With a shorter term, you’ll pay less interest over the life of your loan. You may also be able to extend your repayment term if needed.
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3
Debt consolidation
Consolidating debts into one easy-to-manage home loan can make life easier and potentially save you money, particularly if other debts feature higher interest rates.
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4
Predictability
Converting your existing loan from an adjustable-rate to a fixed-rate mortgage will provide you with fixed monthly payments that remain the same throughout the duration of the loan.
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5
Mortgage consolidation
Converting multiple mortgages into one mortgage can make repayment simpler and potentially save you money.
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6
Free up cash
With a cash-out refinance loan, you can get access to fund future home improvements, debt consolidation, college tuition, or unexpected medical expenses. The purpose of this type of loan is to extract equity from your home.
Refinance tools and resources
Types of refinance loans
When it comes to home refinancing loans, we offer many different solutions to help you stress less — and save more.
Related articles
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How Soon Can You Refinance a Mortgage?
Mortgage Loan Process Explained
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