Refinancing is a means of replacing high-interest debt with a loan that has a lower interest rate. A refinance mortgage lender specializes in mortgage refinance in order to switch from a fixed to variable rate, or vice versa, or to eliminate a balloon payment. A cash-out refinancing is one that involves you paying off your loan and borrowing an additional amount. The entire loan amount is secured by a mortgage lien on your home or property. A refinance mortgage lender offers the following to the borrower:-
- A refinance mortgage lender combines a first and second mortgage into one payment saves time and effort that occur when you make payments to multiple lenders.
- Refinancing can lower your payments to make sure it reduces your monthly payments. A refinance mortgage lender can help you stretch out your loan term. A 15-year mortgage loan by refinancing with a 30-year mortgage.
- You may want to refinance in order to pay off an auto loan or credit card debt. After all, the interest on a mortgage or home equity loan is tax-deductible in most cases, while the interest on consumer debt is not.
- To help you plan with more certainty, a refinance mortgage lender may want to lock in a fixed monthly payment that occurs when you refinance an adjustable-rate mortgage with a fixed-rate mortgage loan.
- If the loan-to-value (LTV) ratio on your original home loan was more than 80%, your lender likely required you to obtain private mortgage insurance. If you think your LTV is low enough and your current lender is reluctant to drop PMI, refinance your mortgage and the lender will not charge PMI.
Thus a refinance mortgage lender helps you put more money in your pocket each month with reduce monthly payments and lower fixed interest rate. This will accelerate the repayment of your debt and remove tax liens.