Let Mlend Help You with Refinancing
January 29, 2021
Every month, we dip into our bank accounts to pay bills. While credit cards and electric bills fluctuate, some numbers, like home loans, mostly stay the same.
However, making a change to that regular mortgage payment could be a smart financial move.
Some are facing hard financial times. Others may want a lower interest rate or to shorten their payment term. And some customers choose refinancing to turn the equity they have earned into available cash to pay for home improvements or other expenses.
Refinancing changes your monthly mortgage payments by allowing the bank or lender to pay off the current mortgage and replace it with a new one. There are various types of refinancing to choose from and our Mlend team can help figure out the right one for you.
A rate and term refinance can lower your interest rate and could shorten your payment term. For instance, a mortgage could change from a 30-year to a 15-year payment term. The payment amount would be determined by your specific rate, but a lower interest rate and a shorter payment term can allow for a quicker payoff and overall savings on investment. Interest rates have reached record lows over the past several years. Now could be a good time to make the change.
Alternatively, cash out refinance is exactly what its name implies. Customers can get cash to refinance their home for up to 80 percent of its current value. For example, your home could be worth $200,000 with $140,000 owed on the loan. If you are qualified as a borrower for a cash out refinance, a bank or lender could give you $20,000 as a cash out, making your new mortgage $180,000.
Deciding to refinance is a big decision, but our team at Mlend can help you determine whether it is the best financial move for you.