By refinancing your mortgage, you can replace your current loan with a new mortgage bearing better terms. Refinancing can save you thousands of dollars as well as give you the peace of mind of a mortgage with fixed monthly payments. For example, if you have a 15-year mortgage with a balance of $150,000 and a fixed interest rate of 7 percent, and you refinance it for a mortgage with a 5 percent interest rate, you could save more than $29,000 in interest payments over the life of the loan. To qualify for a refinance, you must be current on your mortgage payments and have a good credit history.
Lower Monthly Mortgage Payments: A mortgage refinance can reduce your monthly payments. For instance, a refinance could extend the term of the loan from 15 years to 30 years, which would reduce monthly payments. For example, the monthly payments of a $200,000 mortgage with a 7 percent interest rate would drop from about $1,792 to $1,329 by changing from a 15-year loan to a 30-year loan.
Lower Interest Payments:If interest rates have dropped since you bought your mortgage, you may be able to refinance it to a lower interest rate. This can save you a lot of money. For example, if you reduce the interest rate of a 30-year $200,000 mortgage by just 1 percent--for instance, from 6 percent to 5 percent--you can save over $45,000 in interest payments.
Cash Out:A cash-out refinance allows you to tap into your property's equity by taking out another mortgage for more than you currently owe. To apply for a cash-out refinance, you must have positive equity; in other words, the market value of your home must be higher than the balance on your current mortgage.
Fixed Interest Rate:A refinance can change your current variable-interest or interest-only mortgage to a fixed-interest mortgage. Fixed interest rates give you the peace of mind of knowing what your monthly payments will be for the life of the loan. If you have an interest-only loan and refinance it to a fixed-interest mortgage, you might not see your monthly payments go down, but you will save money on interest payments.
If you are interested in refinancing your home in the Rancho Cucamonga, Chino, Chino Hills, Upland, Ontario,Fontana area
To see if you qualify call Julian Lopez direct at 909-996-4470
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