Find the RIGHT plan
Save money and make it easier.
Move to a Shorter Term
Moving to a 30 Year Fixed to a 15 Year Fixed is a good financial decision when qualified. Even if 30 year rates are below current market rates, moving to a 15 Year Fixed can save thousands of dollars. This allows those qualified to pay off the house quickly.
Move to a Longer Term
Going into a short-term mortgage can save on interest costs. When experiencing payment hardships or a change to circumstance moving from a 15 Year Fixed to a longer term 20, 25, or 30 Year Fixed mortgage can be a better idea allowing monthly savings and giving space.
Move to ARM from FRM
With an Adjustable Rate Mortgage, worrying about a future rise in rates can be solved by moving to a Fixed-Rate Mortgage (FRM). Great for a long-term mortgage the FRM rates are usually higher than ARM but gives peace of mind over changing rates.
Move to ARM to ARM
Nearing an adjustment period with an ARM loan without a long-term commitment to the loan can allow movement into another ARM saving interest costs. With 5 and 7 year ARM pricing at least 1% lower than the fixed rate it makes sense to move to an ARM from another ARM saving monthly payment and interest costs.
Eliminate Mortgage Insurance (MI or PMI) Premium
When home prices go up or principal payments are paid down, with 20% equity in the house or extra cash being brought in it may be time get rid of that pesky mortgage insurance.
Reduce Mortgage Insurance (MI or PMI) Premium
When home prices go up or principal payments are paid down, with a FHA loan it can change to a conventional in order to reduce MI.
Get a Cash-out Mortgage
With big expenses or major purchases looming, doing a cash-out refinance is a great idea. This will require equity and include a higher rate than regular refinance but may still be much less expensive than borrowing from somewhere else or using retirement savings.
Get a Lower Rate
With bad credit when getting the loan or having a higher rate refinancing will help lower the rate.