The majority of mortgage loan applications over the past several years have been for refinancing due to historically low interest rates. People refinance for a variety of reasons including changing from an adjustable-rate to a fixed-rate mortgage, shortening or lengthening the term of the loan, home renovations, getting a loan with better terms and debt consolidation.
Refinancing can make a significant difference in the amount you pay each month. However, refinancing a mortgage is similar to when you applied for your loan initially. You must have a relatively good credit score, pay closing costs and fees, and may even have a cursory home inspection. So you need to be sure that it will really be worthwhile and do plenty of research. Focus on long-term costs and benefits based on the equity in your home, the terms of the new and existing loans, and the break-even point at which you will recover your costs.
If you plan to remain in your home past the break-even point, refinancing may make sense. If Cornerstone handled your original mortgage, we can often help you refinance it more efficiently, saving you time and money while continuing our 25-year tradition of on-time closings and high-trust customer service.