Refinance Your Loan Terms

Refinancing your mortgage loan may alleviate some of the pressure of making your payments. It is important that refinancing now only result in lower monthly payments, but also, lower interest rates. If your current mortgage is for 15 years, a 20- or 30-year mortgage could reduce your payments dramatically.

Research low interest rates and closing costs, and ensure that your current mortgage doesn’t stipulate a high prepayment penalty that could make refinancing more complicated and expensive for you.

“When you are refinancing your mortgage, it means you are replacing your original mortgage with another one that may offer you a better deal. Meaning, getting a better interest rate, a better loan term, or both. Paying back a mortgage can be difficult, and refinancing, especially when you have good credit history, can be very beneficial. There could be many reasons that you want to refinance your mortgage, including getting a lower interest rate, agreeing to a shorter loan term, switching between adjustable interest rates and fixed interest rates, or get some cash from your home equity,” says Gerry Nicodemus, a mortgage expert.

In March 2018, data released by the Mortgage Bankers Association, showed that refinancing applications had fallen to 4.5 percent, the lowest level  since September 2008, despite the fact that the average 30-year fixed rate for traditional mortgages, has risen to 4.68 percent, the highest level in four years.

Refinance Your Loan Terms

Refinancing your mortgage loan may alleviate some of the pressure of making your payments. It is important that refinancing now only result in lower monthly payments, but also, lower interest rates. If your current mortgage is for 15 years, a 20- or 30-year mortgage could reduce your payments dramatically.

Research low interest rates and closing costs, and ensure that your current mortgage doesn’t stipulate a high prepayment penalty that could make refinancing more complicated and expensive for you.

“When you are refinancing your mortgage, it means you are replacing your original mortgage with another one that may offer you a better deal. Meaning, getting a better interest rate, a better loan term, or both. Paying back a mortgage can be difficult, and refinancing, especially when you have good credit history, can be very beneficial. There could be many reasons that you want to refinance your mortgage, including getting a lower interest rate, agreeing to a shorter loan term, switching between adjustable interest rates and fixed interest rates, or get some cash from your home equity,” says Gerry Nicodemus, a mortgage expert.

In March 2018, data released by the Mortgage Bankers Association, showed that refinancing applications had fallen to 4.5 percent, the lowest level  since September 2008, despite the fact that the average 30-year fixed rate for traditional mortgages, has risen to 4.68 percent, the highest level in four years.

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