Refinancing Mortgages 2021
By: Lisa Neis
Mortgage and home loan expert based in St. Louis, MO
Should I refinance my mortgage?
To answer the question of refinancing a mortgage in 2021 let me first define it. Refinancing a mortgage is taking out a new loan to pay off an existing loan. There are a variety of reasons a homeowner opts to refinance their mortgage or home loan.
It is not always just about mortgage rates. There are many factors to consider. Understanding how refinancing works and the options available can help you decide for yourself and your unique situation.
Here are a few examples where refinancing a home loan might be a good option for you:
Changing mortgage terms
Often, shortening a loan term or extending a period to adjust monthly payments or pay off the loan sooner justifies refinancing a mortgage.
To obtain a lower mortgage interest rate
Lowering your mortgage interest rate is one of the best reasons to refinance your existing home loan. Reducing interest rates will help you save money and increase the rate at which you build equity in your home.
Career and income change
If your income and credit history have improved since you purchased your home, you may qualify for a more favorable home loan. One place you can check out your score is FreeCreditReport.com
Removing PMI (Private Mortgage Insurance)
If you purchased your home with less than 20% down payment, chances are you’re paying PMI. The equity in your home may be enough to refinance to remove the monthly PMI Insurance, which will lower your payments.
Utilizing the equity in your home
Maybe you have credit card debt with high rates and payments. Rolling them into the home loan can help reduce the monthly costs and the mortgage interest rates, OR, maybe you want to make home improvements. Although you can do what you want with the cash you receive from a cash-out refinance, it’s important to remember that your refinance is still a loan.
Whether you want to lower your monthly payment, use the equity in your home for home improvements, or remove PMI, refinancing a mortgage might make you move closer to achieving your financial goals!
To get started with First Integrity Mortgage Services, give us a call today. We provide personal service and advice to help you assess your options. For more information or to see if refinancing a mortgage is the right option for you, please contact Lisa Neis, NMLS 738709, at (314) 640-6865 lneis@firstintegrity.com.