Understanding Your Refinancing Options
The idea of replacing an existing mortgage with a new loan has been a popular option for home owners for decades. Refinancing can provide you with the opportunity to achieve a lot of different financial goals, and the process of getting a replacement home loan is generally easier than the approval for your original loan.
Traditionally, making the effort to refinance was only worthwhile if you had sufficient equity in your home (more market value than the outstanding loan balance). Since the housing crisis that began in 2007-2008, however, you have a number of new options for refinancing your home loan. There are even programs in place backed by the government for homeowners who owe more than their house is worth.
Defining Your Refinancing Goals
If you have a need to refinance your current mortgage to lower your monthly payments, you have several possibilities to consider. If you want to take advantage of the equity in your home with a new loan, you have even more opportunities to do so. You may also be able to eliminate some of the current costs of home ownership with a new loan.
Just a few of the loan programs you may qualify for to refinance your home include the:
- Home Affordable Refinance Program (HARP). This program may be beneficial for homeowners who have “upside down” mortgages. Sometimes also called being underwater, this is a situation where market conditions make your home worth less than what you owe on your existing mortgage.
- FHA Streamline Refinance Program. Designed for homeowners who are already have an FHA financed mortgage, you may be able to qualify for a new loan without the cost and hassle of an appraisal or full credit qualification.
If you are not in need of one of these programs, you will also find a number of attractive traditional refinancing programs. Questions? Contact Paramount Equity® today. We look forward to helping you.