What does it mean to Refinance?
Refinancing a mortgage involves replacing your current mortgage with a new one. Essentially, you are paying off your old loan and obtaining a new one with different terms. This may include securing a lower interest rate, extending the term of the loan, or changing from a fixed-rate to an adjustable-rate mortgage.
Start With a Specific Goal
A refinance replaces your current mortgage with a new loan. Possible goals include changing the rate or term, improving payment stability or reviewing equity options. Eligibility and available benefits depend on the program and your situation.
Compare Savings With Costs
Review the new payment, loan balance, closing costs and total interest over your expected ownership period. Extending the term can lower the monthly payment while increasing total interest. Costs added to the balance still need to be repaid.
Keep the Existing Loan in the Comparison
Compare refinancing with keeping your current mortgage. Ask how long it would take for expected savings to offset costs. If cash-out or debt consolidation is involved, review the additional debt and the risk of securing it with your home.
Request a Personal Review
Have your current mortgage statement, goals and expected time in the home ready for a conversation. Approval and savings are not guaranteed.
Ask a TGBMC home loan advisor, call (469) 351-1081, or start your secure application.
An inquiry is not a loan approval or rate lock. Use the secure application process for financial documents.
Official resource: Learn more about this program.
Contact The Good Buy Mortgage Company today to see if you are eligible to refinance your home and save money over the life your remaining loan!
