When you need a quick and easy refinance of your home or investment property, try First Capital Mortgage Group, LLC. Our customers have said that our speed of processing, knowledgeable staff and aggressive programs set us apart from our competition.To get started immediately click here for our on-line application.
There are many things to consider when refinancing your home loan. The fees associated with refinancing can add up quickly, so many mortgage companies will waive legal fees and fees associated with refinancing applications. This fee reduction can amount to large savings for the home owner but may result in a slightly higher percentage rate than expected. It is important to talk about your loan options with your loan officer. Additionally, the amount of time you plan to spend in your home will impact your decision to refinance. Many mortgage lenders will allow home owners who expect to live in their home for a minimum of three to five years to pay “points” and closing costs upfront. This option ensures that the home owner obtains the lowest percentage rate available.
Saving money is important to many consumers and refinancing your home loan is one way you can lower your monthly payments. A careful analysis combined with the advice of your mortgage broker will ensure that you make the right decision. The costs associated with refinancing are similar to those of obtaining an original home loan and include legal fees, application fees, settlement costs, and other related fees. When refinancing, additional fees will arise and can include a fee charged if you paid off your original mortgage early, the points associated with the refinance, and the home loan interest rate. Typically the cost runs between three and six percent of the total amount of the home loan. However, many mortgage brokers can offer zero point loans and low-cost refinancing. Therefore, even if your rate change is less than one percentage point, you may be able to save some money by refinancing. Contact your home loan advisor to discuss the various costs and laws governing the fees charged by mortgage companies and the potential savings you can enjoy.
In the past, the decision of whether or not to refinance meant balancing the savings of a lower monthly payment against the costs of refinancing. In recent years, mortgage lenders have introduced "no cost" and low-cost refinancing packages that minimize or completely eliminate the out-of-pocket expense. With traditional refinancing, the interest rate for your new mortgage is often about 2 percentage points below the rate of your current mortgage. However, with the newer low and no-cost refinancing programs offered, home owners can find it valuable to refinance to obtain a reduction in interest rates.
Many mortgage lenders will offer a refinance package in which you refinance for more than the balance remaining on your old home loan. In the mortgage world this is called “cashing out”. The economy has also caused interest rates to drop recently which may allow you to refinance your home without increasing your monthly payments. The extra cash that results from refinancing can be used for many purposes; one of the smartest ways to use these funds is to pay off any loans with higher interest rates. If you are not in debt, you may want to use the money for a more enjoyable purpose, such as building an addition onto your home. Whichever way you decide to spend the money, your mortgage broker can help you through the process.
When home owners make the decision to refinance their home loan, they must decide which interest rate will work best for their situation. There is typically a range of interest rates at different point increments. Remember, a point is equal to one percent of the loan amount. When you work with your home loan representative you will be able to analyze the different interest rates and related points, which can save you money. However, some combinations of interest rates and points may cause your monthly payment to increase. Be sure to discuss all options with you home loan advisor before making a decision.
The costs associated with refinancing are similar to those of obtaining an original home loan.These include legal fees, application fees, settlement costs and others. When refinancing, additional fees will arise and can include a fee for early payment of the original mortgage, the points associated with the refinance, and the home loan interest rate. Typically the cost runs between three and six percent of the total amount of the home loan.
Refinancing makes sense for many of our clients because it can result in valuable savings. It is also a good time to refinance for a second time. The timing is important because when interest rates are falling quickly you can reduce your monthly payments even further. Your mortgage brokers will also help you understand the tax write-off associated with a second refinance. The money that many are saving can be used to create emergency cash funds, build home additions, or save for a child’s future education.
Home owners have two rate options when refinancing their home loan: fixed rate and adjustable rate mortgages, often referred to as ARMs. ARMs are attractive in today’s economy because they offer very low introductory rates, but due to financial market instability these rates can jump quickly and homeowners may find themselves paying more than expected. Adjustable rate mortgages are not always unpredictable though. Homeowners who know the length of time they plan to stay in their home may secure an ARM for that specific amount of time, which will save money and avoid rising payments.
Mortgage brokers are knowledgeable of the laws governing mortgage taxes. Many homeowners find the tax issues related to the home loan refinance process confusing, but your mortgage broker will guide you through the process. To explain briefly, the Internal Revenue Service (IRS) has ruled that interest paid for refinancing must be deducted over the life of the loan. However, if the home loan is being used to make improvements to a house, the borrowers may be permitted to deduct a portion of the interest right away. The exact tax laws concerning refinancing are complex and the details should be discussed with your mortgage broker. The IRS website, www.irs.gov, may also be helpful when gathering general information on the subject of taxes and refinancing.
Refinancing your Boston home loan is a great way to gain extra cash. Boston refinances are popular among Boston home owners and our Boston mortgage brokers are experienced with Boston refinances. Contact us today to learn more about your Boston refinance.
