Jeannine Downey, Mortgage Consultant, 10260 SW Greenburg Rd #830 Portland, OR 97223 office 503-517-8753 cell 503-869-0903 fax 503-520-0620
- Regardless of where you may be in life, refinancing is always worth considering. Whether you’re consolidating debt or lowering your monthly payment refinancing gives you more financial flexibility. Here are a few of the many benefits . . .
- Rate reduction
Generally, if your closing expenses can be recovered within the first 30 months of the new loan, refinancing is probably a good idea. - Loan Term Reduction
Although you may experience slightly higher monthly payments, a loan term reduction often translates into a significant reduction in interest costs, as well as a quicker build-up of equity. - Refinance from one ARM to a Fixed Rate, or to a new ARM
You may have an adjustable rate mortgage (ARM) you're not entirely satisfied with. Maybe the rate is higher than you like or the potential for rate increases looms ahead. If you plan on staying in your home at least five years, now might be an excellent time to switch to the payment security of a fixed rate loan. Or, if you plan on moving in less than three years, consider refinancing to a new ARM to take advantage of the low starting rates that may be available. Even if the new ARM's rate rises at the first adjustment interval, the starting rate may be low enough to offset any increased payment costs. - Mortgage Consolidation
Many borrowers have built up significant home equity over the years through appreciation and principal reduction. These borrowers may refinance an existing mortgage to a larger loan amount, with the additional funds used for any purpose - investment, car, tuition, debt consolidation, etc. And, unlike any other consumer loan, the interest paid on the "cash out" could be 100% tax deductible (Consult your tax advisor)! - Balloon Payment Due
If you have a balloon mortgage with a lump sum payment due in the near future, consider refinancing if you are comfortable with the current rate environment.
