Reasons To Refinance Mortgage To Benefit Homeowners

Reasons To Refinance Mortgage To Benefit Homeowners

Gustan Cho Associates are mortgage brokers licensed in 48 states

This article covers Reasons To Refinance Mortgage To Benefit Homeowners

Mortgage rates are at a three year low.

The Top Reasons To Refinance Mortgage

There are many reasons to refinance mortgage.

  • The top main reasons to refinance mortgage is due to lower rates
  • Refinancing due to lower rates will not just lower the homeowners monthly housing payments but homeowners can save tens of thousands of dollars over the course of the loan term
  • Again, the top reasons to refinance mortgage is to get a lower mortgage rate
  • With rates being at a 36-month low, many homeowners are taking advantage of the market to refinance their current home loans
  • There are cons with refinancing
  • The main con in refinancing is resetting the time clock on your home loan
  • A new mortgage will restart the 30 year-term clock to restart

However, homeowners can get a lower amortized mortgage such as a 15 to 25 year fixed rate mortgage versus a 30 year.

Credit And Income Profile Changed For The Better
Credit And Income Profile Changed For The Better

Many borrowers have higher credit scores and a stronger financial profile than when they first closed on their home loans.

  • Higher credit scores mean lower mortgage rates
  • Also, home prices have appreciated exponentially nationwide over the past several years
  • This may mean a lower loan to value
  • Lower loan to value means less risk to lenders
  • Lower risk to lenders means lower mortgage rates

If your credit scores have improved and your loan to value is lower due to higher home values, you may think of refinancing your FHA  to Conventional Loans. Doing so can eliminate paying the hefty FHA Annual Mortgage Insurance every year. Or taking advantage of the better rates with a higher credit score can often be beneficial to borrowers.

Reasons To Refinance Mortgage: Cash-Out Refinance
Cash-Out Refinance

With home prices appreciating, many homeowners do not realize the equity they have in their homes.

  • Homeowners can utilize the equity in their homes and see if they qualify for cash-out refinance mortgage. HUD allows up to 80% LTV Cash-Out Refinance on FHA Loans
  • Fannie Mae and Freddie Mac allow up to 80% LTV Cash-Out Refinance on Conventional Loans
  • Gustan Cho Associates offers 95% LTV Debt-Consolidation Mortgages
  • The Veterans Administration (The VA) allow up to 100% cash-out refinance mortgages on VA Loans
  • Non-QM and Bank Statement Loans For Self-Employed Borrowers offer up to 80% LTV Cash-Out Refinance Mortgages

Proceeds from cash-out refinance mortgages are tax-free. Borrowers do not have any tax obligations on cash-out refinances. Borrowers can use the proceeds of cash-out proceeds for any purposes. They can purchase a new car, a second home, investment property, invest in the stock market, and pay off outstanding debts.

Taking Out Co-Borrowers

There are instances where homeowners need to take out non-occupant co-borrowers by refinancing their home loans. With a new refinance mortgage, borrowers can take out any non-occupant co-borrowers. They can also take out co-borrowers. This is very common when a married couple divorces. The homeowner who gets awarded the home may need to refinance the home so they can take the ex-spouse off the mortgage note. For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.