Options To Refinance Your Mortgage

by Jesse Marks 07/22/2018

If you are thinking of refinancing your mortgage, there are so many options available to you that address your needs. Whether you want to do some home improvement projects or provide a down payment for another property refinancing can be a good option for you. There are many different options when it comes to home loans and refinancing. Below, you’ll find some of the most popular choices and what they mean for your mortgage and your finances. 


Standard Refinance


A standard refinances requires that you have a certain amount of equity in your home. If you want to avoid Private Mortgage Insurance (PMI on the refinance, you need 20% equity in the home. Different lenders have different requirements for the amount of equity that you need in order to do this primary refinancing of your home loan. Keep in mind that a good credit score is also a requirement to do this type of loan.


Refinancing With Cash Out


This option is great when you need to take some of the equity out of your home. This way, you can get some of the equity out of your home without selling the house. This way, you’re able to refinance the mortgage, get a good loan term that’s affordable, and borrow a part of the equity you have built up in your home.


You can use the cash that you take out for just about anything you need including college, home renovations, business start-up costs, or to consolidate other debt you have. The only drawback is that you’re not able to borrow 100% of your equity. Usually, the highest percentage you’re eligible to borrow is 80%. The amount is based on both the equity you have built up in your home along with your income. Also, keep in mind that after you take out one of these loans, the amount of equity you have in your home decreases.  


Short Refinance


Short refinances may not be offered by all lenders. If you don’t qualify for a HARP loan or standard, refinance this could be a good option for you. If you hope to avoid foreclosure and are struggling to pay your mortgage each month, your lender may agree to the terms of this type of loan. The loan is in effect is a combination of a short sale and a refinance. The lender agrees to pay the existing mortgage off. The loan s replaced with a new mortgage. Beware that if you choose this option, your credit score may go down significantly. If you’re able to keep up with the new mortgage payments, you’ll be able to repair your credit score over time.         


About the Author
Author

Jesse Marks

I spent years as a Law Enforcement Officer with the DC Housing Authority Police Department; it was my duty, and a privilege, to protect and to serve the public interest. I use that same dedication and commitment to my clients advantage. With the proper information and guidance, your home buying or selling, adventure...will not be intimidating. INTEGRITY Buying or selling a home is the most important transaction in your life. Because of that, it is important that you work with someone with integrity, that you trust, and feel is a market expert. People trust me with their most-valuable asset. It's a responsibility I take very seriously. I know that your success is my success. LOCAL EXPERTISE I offer local expertise in a home market tailored to meet your needs. As a local professional, I know the neighborhoods, schools, market conditions, zoning regulations and local economy. I will do the leg work, keeping you up-to-date with new listings and conditions as they impact the market. I will make the process as pleasurable and stress-free an experience for you as I can. SUCCESS I don't measure my success through awards received or achievements, but through the satisfaction of my clients. Whether you are looking to buy or sell your home, I will provide sound and trustworthy advice to help you achieve your real estate goals. Let me guide you through the complexities of buying or selling your home, eliminating hassles and stress. I look forward to working with you.