Refinancing
What is Mortgage Refinancing?
Are you looking to reduce your monthly mortgage payments or want to pay off your mortgage in a shorter time frame? If so, we suggest refinancing your loan – or paying off your existing mortgage using a new mortgage loan.
Benefits of Refinancing
Lower mortgage payments.
Pay off the loan faster.
Use equity to eliminate mortgage insurance.
Lower interest rates.
Flexible and shorter loan terms.
There are two types of refinance loans:
Cash-out Refinance
When you refinance your loan, a portion of the money (or equity) you’ve paid on your home can be given to you as cash. You can use up to 80% equity of your home’s value.
Benefits
- Use the cash to pay off high-interest debts.
- Put the money toward home renovations or college expenses.
- Add the extra funds to a high-yield savings account or other investment option.
Rate and Term Refinance
This type of refinancing allows you to change your mortgage loan’s interest rate and term of the loan without changing the principal balance of your loan
Benefits
- You can switch the type of loan you have to help you better manage your finances.
- You can build more equity faster and get out of debt sooner. If you shorten your loan’s term, you can save total interest costs over the life of the loan.
- You can have a smaller monthly payment.
Frequently Asked Questions
When can I refinance my home loan?
If you have a conventional or VA loan, your name is on the loan’s title and you have paid your current mortgage for at least six months, you can apply for refinancing.
Do I have to pay closing costs when I refinance?
Depending on equity, closing costs can be included in the monthly payments. Our mortgage experts can talk with you more about what your specific fees will be.
How often can I refinance my home?
When you consider refinancing your home, you must also consider your financial goals. Think about whether you have enough equity built up in your home. Are interest rates lower than when you first got your home loan? Are you planning to stay in your home for a long period of time? Let’s talk more about whether refinancing is a good option for you.
Ready to get started?
Securing your home mortgage loan with RailTrust is simple. Apply now and put our experts to work for you.