Refinancing Your Home: The Pros and Cons

Interest rates are at a historic low and buyers are taking advantage. It’s also the perfect time to refinance! Can’t decide whether or not you should refinance? Take a look at the pros and cons:

Pros:

Lower Monthly Payment or Loan Term
Those who are refinancing now are cutting their monthly mortgage payments by hundreds of dollars. This would free up room in your budget for other financial goals! Do you have a 30-year loan but want to pay off your home faster? You can also choose to refinance your 30-year loan into a 20, 25 or even 15-year loan!

Get Cash Out
A great alternative to a home equity loan is doing a cash-out refinance. This allows you to access a large chunk of cash without selling your home. You might use it for home improvements or paying off some debts. The possibilities are endless!

Streamlined Process with RMN
With our expertise and knowledge, we have streamlined the refinance process. Many loan programs such as FHA and RD have refinance options that don’t even require an appraisal! This makes the process easy, fast and inexpensive with very little documentation required. Do you have a VA loan? This program has one of the simplest options to refinance! It’s called a Streamlined Refinance – no income or asset verification is required – no appraisal is required – you simply pay basic closing costs (added to your loan) and you drop your interest rate and your payment!

Keep the MCC with RMN
If you have the Mortgage Credit Certificate it must be renewed by the lender that refinances your mortgage at the time of the refinance! If you refinance through an online lender or your current servicing lender, they will not be a participating lender and are unable to keep the MCC for you. Reminder this is valued at $2,000/year!

Cons:

Restarting Your Loan Term
No matter how many years you’ve been paying off your loan, you will have to start your loan term over. The thought of starting your loan term over can seem unfair or stressful to many customers, but there are so many benefits that it’s hard to let that stop you from refinancing!

Still aren’t sure if you want to Refinance with RMN? Check out this video of our loan officer, Jessica Greving.

You will undoubtedly receive solicitations from online lenders and even your current servicing lender to refinance. I assure you that you will receive the most stress-free, competitive offer if you go directly through our office, just like your last purchase or refinance. If you’re ready to start the process, contact us today!