Question:

How to best refinance your home mortgage loan?

Answer:

There are many reasons to refinance your home mortgage loan - starting from rates have dropped, to 'those rates are killing me', to you may need a cash-out refinance, or simply your mortgage is so small you feel a cash-out refinance with investing purposes makes great sense.

To make the best choice, you have to know why you want to actually refinance. In case rates have dropped enough to justify refinancing, take some advice from a mortgage broker you trust. They are exposed to a lot of loan products and may in fact be very helpful shopping a new home mortgage for you.

If rates are unbearably high, talk it with your lender and try to negotiate rate reduction. Sometimes the lender will be willing to let you refinance to another home mortgage loan option with them to keep your business, especially now that market is tight.

If your balance on the mortgage is halfway, you may take some time to think - is a cash-out worth losing the joy of becoming a homeowner? If your home mortgage loan does not have killing rates, you may like to keep it that way and refrain from wasting your equity only because 'everybody does it' or your lender dropped a word about 'benefits of tapping home equity'

However, if you have paid off your mortgage loan and think of getting a new house, or investing, this is a totally different case. If you are an investor, you must be aware of the risks and opportunities refinancing your home mortgage loan presents to you.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: