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What Exactly is Refinancing?

Your current mortgage may turn out to be the lifetime commitment that it seemed to be when you were in the middle of your closing. But because interest rates change constantly, what may have seemed like a good rate when you first purchased your home may be much higher than today's rates. If you choose to refinance to take advantage of the new rates, you will have to take out a new mortgage with a lower rate or more favorable terms, and use it to pay off your old loan.

You can pay off your loan faster or lower your monthly payments.

As a result, refinancing could save you a substantial amount of money over the course of the loan and bring your housing expenses more in line with what other people are paying for their homes. This gives you the option of paying off your loan faster or lowering your monthly payments.

Just like your original home purchase, refinancing requires you to choose the right loan for you, based on your financial goals. There are many types of loans, but three popular types are: Fixed-Rate Mortgage, Adjustable-Rate Mortgages (ARMs), and Interest-Only Mortgages.

An Allpointe Mortgage Advisor would be happy to discuss which loan type is right for you and recommend a loan that is customized to your needs. Call us now at 866-255-3535.