Refinance Loans
Refinance Loans are a great option if you are looking to take cash out, get a lower interest rate or change payment terms. These loans give you an opportunity to utilize the equity in your home. They also help you reset payment terms if you’re having trouble keeping up.
When refinancing one’s existing loan, it is possible that the consumer's total finance charges may be higher over the life of the loan.
What Is A Refinance Loan?
When refinancing one’s existing loan, it is possible that the consumer's total finance charges may be higher over the life of the loan.
A refinance loan allows you to replace your old mortgage with a new one. Your lender will have to reevaluate your creditworthiness as well as the equity in your home before deciding whether you qualify. The biggest changes that will take place if you refinance will be in the interest rate you pay and your payment schedule. The three main uses of a refinance loan are as follows.
Take Cash Out
When refinancing one’s existing loan, it is possible that the consumer's total finance charges may be higher over the life of the loan.
Interest rates change with the flow of the economy. If those interest rates drop below your mortgage interest rate, refinancing your mortgage could be a good idea. Refinancing may be able to save you money and reduce your monthly payments. However, if the closing costs of the new mortgage are higher than your savings, then you’ll need to revaluate.
Change Payment Terms
When refinancing one’s existing loan, it is possible that the consumer's total finance charges may be higher over the life of the loan.
If you are having trouble keeping up with your monthly payments due to a change in your income, refinancing may be able to help. Mortgage refinancing means you are essentially getting a new mortgage and that also means you get to set new terms. You’ll have the ability to choose a longer repayment term, which may be able to help reduce your monthly mortgage costs.
What Are The Eligibility Requirements?
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Generally, you should have held the title on your home for a minimum of 6 months (oftentimes more) before you refinance.
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You need a credit score of at least 580, but some lenders will want it to be closer to 620.
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You should have at least 20% equity in your home if you want to receive favorable terms.
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Proof of income.
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Your debt-to-income ratio should be no more than 50% and preferably lower.
How to Get a Refinance Loan with Hartford Funding
Give us a call and we’ll help you figure out if refinancing is the right move for you at this stage in your mortgage. If it is, we can help you figure out the next steps, which are pretty easy if you qualify.
Get Started on Your Refinance
Take out cash, lower your payment, or shorten your term
