Haven't Considered a Refinance? You Should!
When you refinance, you are replacing your current mortgage with a new home loan. This new home loan also comes with a new term, interest rate and monthly payment that is normally more affordable in the long-run. Refinancing can present a number of benefits to homeowners, as you tap into equity you’ve built in your home.
Here are some of the benefits refinancing your home may allow:
- Lower monthly mortgage payments with a reduced interest rate.
- Decrease your loan term to pay your home off faster.
- Eliminate Private Mortgage Insurance (PMI) if your home value has increased enough.
- Adjust your loan type from Fixed Rate to Adjustable-Rate or vice versa.
- Cash-Out Refinance allows you to take equity from your home and use it as cash.
Types of Refinancing
There are two types of refinancing, rate-and-term refinance and cash-out-refinance. You may want to consider a rate-and-term refinance 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. A cash-out refinance, on the other hand, would allow you to take some of the equity out of your home and use it as cash for other purposes.
The Refi Process
So, if you decide to reap the benefits of refinancing your home, you may be wondering what that process looks like. With Lennar Mortgage, homeowners can refinance their homes with a convenient digital mortgage process. Designed for ease and flexibility, you can start the refinance process from your phone, tablet, or laptop. With less mortgage paperwork, you can automatically connect your bank statements, tax records and income documentation in minutes. And, enjoy on-demand support as you make you navigate refinancing your home.
- Get pre-qualified or schedule a consultation with a mortgage expert that can help talk you through the refinance process.
- Work with one of our experts to decide which refinance option is right for you, rate-and-term refinance or a cash-out-refinance.
- Complete your refinancing application with the help of a dedicated loan team.
- Enjoy your savings or use a cash-out-refinance to pay for other expenses!
2020 Refinancing Trends
If you’ve considered refinancing, now is your time to shine. According to Freddie Mac, with mortgage rates hovering near a five-decade low, refinance application activity is once again surging, rising to the highest level in seven years
We are seeing many people decide to take advantage of cash-out refinancing to use the money for other purposes. Among them: going on their dream vacation, renovating the home they refinance, and paying off student loan debt. A lot of homeowners are also finding themselves in a better financial position and choosing a shorter loan period to pay it off faster, going from 15 year loan to 30 year loan.
If you’re curious about the refinance process, you can schedule a consultation with one of our mortgage experts to learn more and decide what refinance option is right for you.