Whitley Mortgage Associates, Inc. NMLS# 107585

REFINANCE FAQs

1. WHAT IS A REFINANCE OF A HOME MORTGAGE?
When a borrower has an existing home loan they may want to:
(a) Lower their monthly payment
(b) Change their current mortgage in terms of:
(i) Years
(ii) Interest rate
(iii) Changing from an adjustable rate to a permanent rate or vis versa.
(iv) Getting cash out of the refinance by taking out some of the equity accrued

2. WHAT ARE THE POSSIBLE ADVANTAGES OF REFINANCING?
a. A borrower can improve their monthly payment
b. A borrower can access the equity in their home with a “cash-out refinance”
c. A borrower can change the terms of their mortgage, by adjusting the years, interest rate or loan amount.

3. WHAT ARE THE POSSIBLE RISKS OF REFINANCING?
a. There are no risks if you talk to a home loan expert and thoroughly investigate all of your options. Or, the risks may be specific to each situation. The only risk is that a borrower would not be fully informed and make a hasty decision, resulting in less desirable terms of a home loan. The best way to avoid this risk is to reach out to one of our home loan experts here.

4. WHEN A HOMEOWNER/BORROWER SHOULD NOT REFINANCE:
a. If you have been paying on your mortgage for a long time, you are likely paying more on the principal loan amount. You see, when a borrower first pays on their loan, the bulk of the monthly payment goes toward interest, not the principal. As the loan matures, your payments may stay the same, but the percentage of payment toward principal goes up and the amount toward interest goes down. This is a good point to discuss with your home loan expert at Whitley Mortgage Associates, Inc.
b. If the current mortgage has a prepayment penalty, you should investigate.
A prepayment penalty is a fee lenders charge for paying off your loan early. This includes refinancing. It may still benefit you to refinance your loan, but you should assess the extra time it will cost to pay off this penalty against what you expect to gain in monthly savings with a home loan expert here at WMA.
c. If you are planning to move soon the savings from lowered monthly payments might not be enough to counterbalance the costs of refinancing. Talk to a home mortgage expert about your specific situation.

5. Find out if you would benefit from a refinance here, or if you want to take a step in that direction, click here!

Related Posts

Contact Us

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
Enter a value
Down payment
Down payment is cash that you pay upfront for your home.
0.0%
Enter a value
Term in years
Number of years you have to pay.
years
Enter a value
Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
Enter a value
Property tax
Enter your property tax here if you know it.
per year
Enter a value
Home insurance
Most lenders require home insurance. Enter its price here.
per year
Enter a value
PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
Enter a value

Your total monthly payment

$


Principal & Interest: $

Our Location