Cash-Out or Cash Back Refinance
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
Is refinancing right for you?
Here are the most common reasons for refinancing:
- You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
- You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
- You have two mortgages and would like to consolidate them into one
- You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
- You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
- You want to move from an interest-only mortgage to a loan that pays down the principal
- You want some extra cash to make a purchase or to pay off other debt
Benefits of refinancing
Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!
Four common refinancing options:
Lower Fixed-Rate Loan
If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
Shorter-Term Loan
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
Longer-Term Loan
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
Mortgage Financial Group, Inc.
NMLS #219650
Mortgage Financial Group, Inc. is a privately owned Mortgage Banker with its corporate office headquartered in Tavares, FL. The company was opened in November 2003 by John Ardito who has over 30+ years in the mortgage industry.
Being a licensed mortgage banker, Mortgage Financial Group, Inc. is a full- service lender in that it originates, processes, underwrites, and closes loans, all in house, enabling itself as a competitive alternative to the banking industry. Although many companies did not survive the mortgage meltdown of 2008, Mortgage Financial Group, Inc. continued to thrive based on its prudent underwriting and ability to adapt.
Offering a complete line of mortgage products including FHA, VA, USDA, Conventional, Non-QM, Construction and Home Equity Lines, we have a loan type for most situations. Our professionals educate and provide options for borrowers to make choices that are right for them and their budgets.
We are a family at Mortgage Financial Group, Inc. with one goal; make the loan process as smooth and seamless as possible. We live by 3 principles:
- Listen with Curiosity – We don’t push an agenda, we listen to your situation and offer options that will work for you.
- Speak with Honesty – We “give it to you straight”. No surprises at closing.
- Act with Integrity – Our word is our bond. The greatest compliment you can give us is your referral of friends or family. We understand what that means.
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