Joe Gonzalez at CrossCountry Mortgage, Inc.
  • Home Selling
  • Home Buyer
  • Mortgage
  • Refinancing
  • Apply Now
  • Send Secure Documents

Refinancing Your Mortgage: Understanding the Various Types of Refinancing

Posted on November 13, 2014 by joeglez

Refinancing Your Mortgage: Understanding the Various Types of RefinancingWhether you’ve been thinking about ways that you can draw on your home equity to fund a renovation project or you want to take advantage of low interest rates before they rise again, refinancing your mortgage is an excellent option.

In today’s blog post we’ll introduce mortgage refinancing and discuss a few of the ways that you can use this tool to help accomplish your financial goals.

Cash-In and Cash-Out Refinancing

Many homeowners refinance their mortgage in order to take some of the home equity out for other purposes. In a “cash-out” refinancing, you take out a new mortgage loan which is greater in value than your current loan. After paying off the existing mortgage you’ll receive a check for the difference which can then be reinvested in home upgrades or put to use elsewhere in your financial portfolio. You may also be able to get a better interest rate in this type of refinancing, saving additional money over the long term.

Do you owe more on your mortgage than your home is currently worth but still want to take advantage of lower interest rates? If so, “cash-in” refinancing is an option that can help you to avoid the mortgage insurance costs that you may be facing when you refinance. As the name implies, cash-in refinancing will provide you with a loan that is for less than the amount that you currently owe, so you’ll need to add “cash-in” to make up the difference.

Home Affordable Refinance Program or “HARP” Refinancing

If you find that you’re unable to refinance your mortgage as the value of your home has declined, the federal government’s Home Affordable Refinance or “HARP” Program may be an option. HARP was developed to assist homeowners in the wake of the 2008 financial crisis and the resulting instability that was caused in the real estate and mortgage markets. If you have been making your mortgage payments on time, have a mortgage guaranteed by Fannie Mae or Freddie Mac and your current “Loan to Value” ratio is greater than 80% it’s likely that you’ll qualify for HARP refinancing.

The above are just a few of the ways that you can refinance a mortgage to better suit your needs and financial goals. Contact your local mortgage professional today to learn more about refinancing and to discuss how you can tap in to the home equity that you’ve built up over time.

Feel free to share!Share on Facebook
Facebook
Share on LinkedIn
Linkedin
Tweet about this on Twitter
Twitter
Email this to someone
email
Pin on Pinterest
Pinterest
Print this page
Print
Share on Tumblr
Tumblr
Posted in Home Mortgage Tips | Tags: Home Mortgage Tips, Mortgage Refinancing, Mortgages |
« How to Use a Mortgage Calculator to Determine Your Monthly Payments, Interest and More
Save Money on Your Home Energy Costs This Winter in Just Three Easy Steps »

Check us out on Facebook

Check us out on Facebook

Stay Up-To-Date with Twitter

My Tweets
© Joe Gonzalez Team 2019 - at Cross Country Mortgage, Inc. NMLS 3029 | NMLS 1854092 | NMLS 126036