If you have equity in your home, mortgage refinancing can be a great way to leverage that equity for your dream renovation project, that trip you've wanted to take, or to help consolidate debt.
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Mortgage refinancing: Unlock your equity
When you refinance your home you replace your current mortgage loan with a new mortgage loan. There are different types of mortgage refinance options, and it’s important to do your research to make sure you’re choosing a refinance option that works best for you. We’ll break down what those options are to help provide information as you decide what refinance makes the most sense.
What are reasons to consider a mortgage refinance?it's your equity, use it when you need it
Mortgage refinancing can make a lot of sense for a lot of different reasons. your reason for refinancing will play a large role in what kind of refinance option works best. Below are some of the more common reasons someone may decide to refinance their mortgage.
Change your loan
Refinancing your mortgage could be a good way to change the type of loan you have. Like going from an FHA loan to a conventional loan for instance.
Shorten your term
A new loan can also mean a new loan term. If you currently have a 30 year mortgage, you can refinance into a 15 year and shorten your loan term.
Unlock your home equityachieve your goals
For many people a home is the most valuable asset they have. Refinancing your mortgage gives you the flexibility to tap into the equity of your home, providing the financial freedom needed to achieve your goals.
Regardless of why you want to refinance your mortgage, Power Mortgage LLC can give you the support you need to feel confident.
Contact us today to discover the freedom provided by home equity.
Have questions about refinancing your mortgage?We've put together some answers to commonly asked questions about refinancing
1 Is it a good idea to refinance right now?
No matter when you're asking this question the answer will always depend on your specific situation. There are many details involved when it comes to determining if refinancing is a good idea for your or not. If you have a very low rate and not a lot of equity, refinancing may not make sense for you if you're rate is lower than the current average mortgage interest rate.
Do you have a lot of debt? Is getting rid of your debt the difference between financial ruin or financial flexibility? The answer to that question could determine a lot as well.
Ultimately, there's no one-size-fits-all answer, and whether or not a refinance makes sense for you depends a lot on your specific and unique financial situation.
2 Will a refinance remove PMI?
A refinance can remove PMI, but only if you have 20% equity vs the value of your home. It's important to remember if you have an FHA loan, PMI will not just fall off once you reach and pass that 20% equity mark. With an FHA loan PMI will only fall off once you've refinanced your FHA mortgage.
3 How does a mortgage refinance work?
When you refinance your mortgage you are essentially replacing your current mortgage loan with another one. If you want cash out, for example, you would take out a new mortgage and request more than you currently owe against your home. The difference is yours to put in your pocket and your equity qualifies you for much lower rates than you'd receive for that cash-in-hand otherwise.
It's important to understand that refinancing will not just give you cash-in-hand free and clear, it's an addition to the amount borrowed with your mortgage that will increase the amount owed for your mortgage loan.
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Provide us with some basic information and a message and we'll get back to you as soon as we're able. Looking for a mortgage broker? Have questions about refinancing your mortgage? You've come to the right place.