At Harbor Mortgage Company, one of the things we can help you with is loan refinancing. In order to help you decide if this step is right for your situation, we have put together this article to cover the basics of what loan refinancing is and how it works.
What is Loan Refinancing?
When someone refinances a loan, they are essentially replacing their old loan with a new one. There are several reasons why you might want to do this—for example, you may want to use your home’s equity to finance some other expense, or you might just want to get a lower mortgage rate.
How Does Loan Refinancing Work?
When you choose to refinance your home loan, the lender will first appraise your home to determine its current value. The lender will then determine the amount you are eligible for in your new loan. You can opt to simply refinance the amount of your existing mortgage at a better interest rate, or you could opt for a larger loan amount in order to consolidate debt or get additional funds to take care of another expense, such as a home improvement project. Choosing to refinance can be a great option for people looking to pay off their loan faster or to take advantage of a good interest rate to get rid of unsecured debts. Loan terms and options vary, so be sure to discuss what you are hoping to get out of your loan with a qualified professional in order to get matched to the right loan for your situation.
Our team wants to help you do what’s best for your financial situation. If you are interested in learning more about loan refinancing, we encourage you to reach out to us at Harbor Mortgage Company to consult with one of our experts. We are happy to discuss your goals and help you determine whether refinancing your loan is the best move for you.