Knowing your options when it comes to your mortgage can save you a great deal of headaches and stress.
To refinance a home may be the perfect course of action if you’re feeling strained in this area. Looking to develop a stronger understanding of the process? You’ve come to the right place.
LeapFrog Mortgage isn’t only committed to helping our audience and client base secure reasonable mortgage rates. We want you to have a grasp on the concept so tight that you’ll know exactly why we make the recommendations that we do. It’s about more than closing deals; we’re all members of the same community, and we’re stronger when we’re informed!
To refinance a home, in so many words, refers to the act of swapping an existing mortgage plan for a new one. Your respective financial institution will reconcile the existing account, possibly bringing on a new total in the process.
There’s a few reasons why this option may appeal to you. You may have interest payments that prove to be a bit too weighty. Or you may be looking to adjust the timeline of your current mortgage plan. Refinancing can help with all of the above!
Rate And Term
One way to go about refinancing your home is known as the rate and term approach. Rate and Term financing aims to lower both interest payments, and the overall number of payment installments. This can also be a good way to turn out some extra cash.
This offers a key opportunity to reshape what your mortgage payments look like. Someone who’s had their mortgage a bit longer may want to refinance so that they’re payments are more like that of a new loan. This means lower interest rates, it may even shorten your term to something more agreeable.
As it’s name implies, this option allows you to trade in on a greater percentage of your mortgage for a big cash payout. This figure caps out at around 80%. It involves a pretty simple equation that pits the home’s value against how much is still owed on it. The difference dictates the final percentage range.
This differs from the previous option, in that, it’s not a big money saver long term. But, if quick, lump sum cash can get you out of a bind, your mortgage may be the go to resource here.
Let LeapFrog Help You
These options offer an alternative to dealing with stressful mortgage payments. It can even have a positive impact on your insurance payments, though this aspect is relegated to the kind of insurance you have. If it’s through a private company, then you may seriously want to consider refinancing your home.
Have more questions regarding the current standing of your home and mortgage? Don’t worry, you’ve come to the place. Whether you’re a first time homeowner, looking to refinance an existing mortgage, or applying for a loan, LeapFrog’s got you covered. Contact us today to learn more!