There are plenty of reasons why homeowners decide to refinance their mortgage loan. By refinancing, homeowners can expect lower monthly payments, new interest rates, or longer repayment periods. Regardless of your goals, refinancing offers many benefits for you to enjoy. 

Understanding Refinancing

Refinancing is the process of replacing your existing mortgage with a new loan. People often do this to obtain a lower interest rate, lower monthly payment, or convert their adjustable rate mortgage to a fixed rate plan. Some homeowners refinance to obtain excess cash to cover home repair costs, pay off debts, and save on monthly payments. Regardless of your goal, the process is similar to a typical loan application which means you need to submit your financial documents again for approval.

How Refinancing Works

Refinancing a mortgage requires you to submit necessary financial documents like you did the first round with your old mortgage. Browse through the different mortgage plans and compare the interest rates and terms to select the most ideal plan for your needs. Compare the new loan with your existing one and analyze how its terms can benefit you. If your current credit score has improved since the first loan, the chances of you obtaining more favorable terms are high. Take note of the closing costs and decide if you are able to commit to the new mortgage terms before you refinance.

Why Should Homeowners Refinance their Mortgage Plans?

  • Home improvement – For existing homeowners, your home may be in need of repairs. When you refinance, the costs of home improvements can be covered by the excess amount obtained at the closing of the new larger loan. You can get the dream home you have always wanted without taking on a separate loan or depending on credit cards.
  • Debt Repayment – The equity you have earned can be used to pay off your debts. Through the cash-out refinance process, you may even be able to continue paying the same monthly payment while paying off your debts.
  • Saving Cash – Refinancing means that you may be able to reduce your monthly mortgage payment. This allows you to save on cash every month which you can use to pay for other meaningful things.
  • Rate Type – Refinancing to a new loan means you can convert an adjustable-rate mortgage to a fixed rate plan. This way, you can avoid being entangled in market fluctuations that may cause your monthly payment to increase when your rate adjusts.
  • Loan Term – You may qualify for a lower interest rate if your loan term is shortened by a number of years. On the other hand, if you wish to reduce your monthly payment, you can choose to extend your loan term.

Why Work with Stockton Mortgage for Refinancing?

Stockton Mortgage offers reliable financial services that have assisted residents from 17 states, including Georgia, Indiana, Kentucky, Michigan, Ohio, and Tennessee to access cash. We are made up of a team of experienced underwriters with access to a Borrower Intelligence System. 

If you are a homeowner who wants to refinance your mortgage, feel free to contact us today for more information. You may also call one of our mortgage bankers at 888-914-2276.

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