Refinancing your home mortgage
Refinancing your mortgage may lower your interest rate and payment, save you interest by shortening your term, help you consolidate debt or pay for an education and more! PA Financial Group can help you tailor a refinance that supports your unique financial goals.
When you refinance your mortgage, you’re actually replacing it with a brand new loan. In doing this, expect to go through a mortgage application process similar to what you experienced with your original mortgage. Refinancing is often a sound financial choice that can allow you to meet a variety of needs:
- Reduce your monthly payments by taking advantage of lower interest rates or extending the repayment period.
- Reduce your interest rate risk by switching from an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan.
- Reduce your interest cost over the life of your mortgage by taking advantage of lower rates or shortening the term of your loan.
- Pay off your mortgage faster (accelerating the build-up of equity) by shortening the term of your loan.
- Free up cash for major expenses or to consolidate debts.
You may already have some goals in mind for refinancing, but do you know which loan option will best help you meet those goals? Selecting the right mortgage is central to the refinancing process, so it’s important to understand your options. You’ll need to consider two things at the outset: which loan type best meets your refinancing needs and which loan term offers the ideal repayment schedule.