Mortgage Refinancing
What Is Refinancing?
Refinancing is the process of replacing your current mortgage with a new one. Whether you want to switch from a 30-year to a 15-year loan or move from a fixed to a variable rate, the goal is simple: Save money.
Most homeowners refinance to secure a lower interest rate, which reduces monthly payments and saves thousands over the lifetime of the loan.
Pro Tip: Refinancing can be simpler than your first loan because your lender already has your financial history on file!
Pros of Refinancing
- Lower Interest Rates: Snag a better deal than your current rate.
- Pay Off Early: Switch to a shorter term to be debt-free faster.
- Remove PMI: Eliminate monthly insurance fees if your equity is over 20%.
- Access Equity: Take cash out for renovations or investments.
- Debt Consolidation: Merge high-interest cards into one low payment.
Cons of Refinancing
- Total Interest: Stretching the term might cost more in the long run.
- Upfront Fees: Appraisal and closing costs apply to the new loan.
- LMI Risks: If your equity is under 20%, you may have to pay insurance again.
Things To Consider
Do Your Research
Compare your current rate, fees, and balance against new options to see the real benefit.
Property Valuation
If your home value has increased, you might have more equity than you realize.
Talk to an Expert
Working with Shrii Finance ensures you understand which options work best for your specific circumstances.
Final Thoughts
Know your options by talking with one of our mortgage specialists at Shrii Finance. We provide expert advice and can help you decide if refinancing is the right move for you.