Reasons to Refinance Your Home
Are you considering refinancing your mortgage? New American Funding is proud to offer refinancing services to qualified Austin homeowners.
Why are the benefits of refinancing?
- You Can Lower Your Interest Rate: You may have an opportunity to obtain a lower interest rate due to a difference in market conditions or an increase in your credit score. A lower interest rate can result in you having lower monthly payments on your home.
- The Term of Your Mortgage can be Adjusted:
- Increasing the Length – You can increase the length of your mortgage to decrease the amount of your monthly payment.
- Decreasing the Length – This option will give you the opportunity to pay your loan off sooner as well as obtain a better interest rate.
- Switching to a Fixed-Rate Mortgage from an Adjustable-Rate Mortgage: With an Adjustable-Rate Mortgage, your loan payments can up or down depending on changes in the interest rate. You can switch to a Fixed-Rate Mortgage to ensure a consistent monthly payment or if you anticipate rates to go up in the future.
- Obtaining Better Terms for Your Adjustable-Rate Mortgage: Refinancing your ARM for gives you an opportunity to receive a new loan with better conditions. These can include lower adjustments to your interest rate and smaller payments caps.
- Cash-Out Refinancing: Are you in need of cash? You can choose to refinance your property for an amount larger than what you currently owe and obtain the difference in a cash payment.
Fees for refinancing vary depending on state or lender but be prepared to pay anywhere from 3 to 6 percent of your borrowed amount or of the money you still owe. Some refinancing fees for Austin residents include an application fee and closing costs.
Is “No-Cost” Refinancing Offered?
Once again costs differ between states and lenders but there are options available to prevent you from paying an up-front fee.
- First, you can arrange for your lender to cover all closing costs but in return you will receive a greater interest rate.
- Second, you may have your refinancing costs added to your loan and become part of the total amount you owe. The fees will be paid off with interest for the entire term of your mortgage.
Do You Qualify For Refinancing?
- The process for refinancing is much like the process you were through in obtaining your first mortgage. To measure your eligibility, our loan officers will look at the amount you wish to borrow against your credit score, income, current value of the property, as well as any outstanding debt you have. Eligible borrowers will receive competitive rates and terms for their refinancing.
Call New American Funding Loan Officer for further information if you have any questions concerning your loan process. To reach New American Funding Austin-Round Rock, use the contact form on this page.