What Is The Right Time To Refinance Your Mortgage?

What is Refinance?

Refinancing the mortgage means paying off your existing home loans and replacing it with a new one that is offering better rates and better terms. 

Benefits of Refinance

Refinancing your home loans help you in cutting down the monthly mortgage payments, reducing the loan term and total repayment amount and helps in building up the equity quickly. 

When should you consider Refinance?

When the interest rates on home loans start to drop or home values start rising, it may be a good idea to refinance your mortgage. Let us learn about these scenarios in detail. 

1.Falling Mortgage Refinance Interest Rates: It can be a great time to refinance your home loan when the mortgage rates are falling. There are two ways to reduce your total cost in such a situation:

•The repayment term remains the same, but your monthly repayments get reduced

•Your monthly payments remain the same, but your loan term gets reduced and you are able to build equity faster.

2.Home Values Rise: 

If your home’s value has increased substantially, refinancing helps you take advantage of that increased equity. For example, you can use the increased equity to pay off high interest debts or use it to pay for high-priced expenses like your child’s education or weddings. 

3.You Haven’t Been In The Home For Long: 

Refinance makes most sense when you approach a mortgage refinance company in the early years of your mortgage term.  This is due to the fact that in the initial years, your monthly payments are paying off the interest part of your mortgage. When you enter the part of the cycle where majority of the monthly payment is covering the principal, you are better off keeping the original loan. 

For more information about refinance and for availing the best mortgage refinance rates, visit http://www.awmlending.com/mortgage-refinance.php or give All Western Mortgage a call at 702-850-2790.

Three Benefits of Mortgage Refinance Infographic

Many people refinance their mortgage due to a lot of reasons. But, before we get to the benefits of refinancing, let us see what the term actually means. Mortgage Refinance simply means clearing the existing mortgage and replacing it with a new one that is available at better terms. The various benefits of refinancing at the right time are listed below:

Do you feel it is the right time to refinance? We can help you with it and tell you if it’ll be a good option for you or not. Call All Western Mortgage - AWM Lending on 702-850-2790 or visit http://www.awmlending.com/mortgage-refinance.php to know more. Our professional mortgage refinance experts will be happy to help you.

Step By Step Guide to Mortgage Refinance Infographic

 Are you ready to replace your old mortgage with a new one? Here is a step by step guide that will help you to refinance your mortgage:

If you are looking for a refinance, All Western Mortgage is a name you can trust to offer you best interest rates and most flexible terms. Call us on 702-850-2790 or click here to know more.

Three Benefits of Refinancing Your Mortgage

Many people refinance their mortgage due to a lot of reasons. But, before we get to the benefits of refinancing, let us see what the term actually means. Mortgage Refinance simply means clearing the existing mortgage and replacing it with a new one that is available at better terms. The various benefits of refinancing at the right time are listed below:

Lower Monthly payments: The major benefit due to which people refinance their mortgage is the substantially reduced amount of monthly payments. If the interest rate goes down below 2% than the rate at which you acquired the initial mortgage, it can reduce the amount of your monthly installments drastically. Therefore, it makes sense to refinance your mortgage in such a scenario.

Building equity faster: If you can afford to pay a higher amount as monthly installments due to some reason or if you can reduce the loan term at the same amount of monthly installments due to a fall in the mortgage refinance interest rates, you might want to switch from a 30 year loan to a 15 year loan as it will build your equity faster.

Changing loan type: Another benefit of approaching a mortgage refinance company is that you can change your loan type. If you feel that ARM type is offering you a better deal than your existing FRM or vice versa, you can refinance your loan and get it changed according to your needs and financial requirements.

Do you feel it is the right time to refinance? We can help you with it and tell you if it’ll be a good option for you or not. Call All Western Mortgage - AWM Lending on 702-850-2790 or visit http://www.awmlending.com/mortgage-refinance.php to know more. Our professional mortgage refinance experts will be happy to help you.

Calculating the Savings On Your Monthly Payments If You Refinance Your Mortgage

If you are planning to refinance your mortgage for the alluring savings that it is offering, you need to first ensure that everything is exactly as it seems. 

Taking a refinance offer on its face value of substantially lower monthly mortgage payments might seem attractive, but there are various other factors attached to it that can’t be ignored. It’s true that once you refinance at the right mortgage refinance rates, the mortgage payments will get lower, but will they be worth paying for the cost of refinance? That’s what you need to figure out before you take the leap.

In order to figure out your net potential savings, first add up all the costs of refinancing the loan. The costs will include appraisals, credit check, closing costs, origination fees etc. You’ll also have to check whether there is a penalty for paying your current mortgage earlier. If there is, include that in the costs as well.

Once you have effectively calculated the cost of the loan then find out at what interest rate you can qualify for a refinance. That will give you an estimate of what you’ll be paying up monthly and how much you’ll save.

Now calculate how much time it will take for the monthly savings, at the new mortgage refinance interest rates, to cover the cost of refinance.

Once you’re absolutely sure that the savings will make up for the cost of refinance easily, only then go ahead with it.

For the lowest mortgage refinance rates and best terms, contact All Western Mortgage (the best mortgage refinance company) on 702-850-2790 or visit http://www.awmlending.com/mortgage-refinance.php

Is Mortgage Refinance a Right Option For You?

Marketers put a lot of effort in convincing you to refinance your mortgage. You’ll hear/read a lot of words like, “Interest Rates at an all time low!” and “Refinance now to save big!” etc.

But whether is it a right time for you to refinance or not depends completely on the circumstances surrounding you. Like anything else, you are the only authority that needs to determine if refinancing is right for you depending upon the specifics of your mortgage loan.

Here are some guidelines to aid you in the decision making process:

The Break-Even Analysis: Approaching a mortgage refinance company makes sense only when you can lower the interest rate enough to easily pay for the closing costs before you sell your home. In simpler terms, calculate how long do you plan on staying in this particular home and then calculate how much you’ll save each month to compensate for the closing costs of refinance. Refinancing only makes sense when you stay in the house long enough to compensate for the closing costs of refinance with the monthly savings.

Going from 30-year loan to 15-year mortgage: Another way in which refinance can help is if you plan on not lowering your monthly payments, but increasing them. If you have a 30-year mortgage and you feel that you can afford higher payments easily. 

  You might want to save on the interest and reduce your loan term. With a 30-year mortgage, you pay double in interest than what you pay in a 15-year term. So if you can afford the higher monthly payments and plan on living this home for another couple of decades, it makes sense to reduce the loan term to 15 years.

So, if you feel refinance is the right option for you, check All Western Mortgage’s mortgage refinance interest rates here. For any other query feel free to give us a call at 702-850-2790.

The Mortgage Refinance Strategy

You’ve decided to refinance your mortgage. But before you begin, it is important to consider that why you want to refinance in the first place because the reason behind refinancing will guide your process from the beginning.

The most common reason why people approach a mortgage refinance company is to lower their monthly payments. If you refinance with another full 30-year term then you can really knock the teeth of your monthly payment. But, that will mean that it will take even longer to pay off the loan and become the actual owner of the home. Not to forget the extra interest that you’ll be paying. 

Before you refinance, you’ll have to take into account how much interest you have paid and how much more you’ll have to pay if you refinance.

Loans, especially home loans, are loaded with heavy interest. So, the longer you’ve been paying them off, the more you’re reducing your principal balance. By not extending your loan term or by reducing it and getting a lower interest rate, you can significantly lower the amount of your interest during the life of the loan.

Therefore, the strategy behind refinancing must be to avail those mortgage refinance interest rates that strike a balance between affordable monthly payments and reducing the overall borrowing cost.

The other most common reasons for refinancing are reducing the loan term on a lower interest rate to build equity faster. For example, if you recently received a substantial pay hike and don’t want to drag the loan for another 20 years, you can consider refinance.

To know more about refinance and to find out whether it will be in your best interest to refinance now or not, call All Western Mortgage at 702-850-2790 or click here.

Step By Step Guide to Refinance Your Mortgage

Are you ready to replace your old mortgage with a new one? Here is a step by step guide that will help you to refinance your mortgage: 

• Establish Goals: First and foremost, you must be clear about why you need a refinance. Is it because you want to shorten your loan term or are you visiting a mortgage refinance company because you want to lower your mortgage payments? Or both? Whatever the reason is, you must ensure that it gets fulfilled by refinancing. 

• Check Your Current Credit Score: The better your credit score, the better mortgage refinance interest rates you’ll be able to secure. 

• Check Your Home’s Current Market Value: Find out your home’s current value by researching your neighborhood and the cost of similar homes which have been sold recently. 

• Compare Mortgage Rates: Compare lenders and shop for the best interest rate. After all, you won’t want to pay more than you have to. 

• Find Out All The Refinance Costs: Refinancing your mortgage has various costs associated with it. Application fees, appraisal costs, origination fees, title insurance etc. are just some of the costs that you’ll incur on refinance. So, get a clear estimate of your closing costs and ensure that you are still saving money before going in for the refinance. 

• Arrange Documents: Gather all your papers like bank statements, salary slips and anything that the lender might ask for. 

• Lock Your Mortgage Refinance Rates: Locking your interest rate at the right time is more art than science. So, tread carefully. 

• Arrange Cash: Have cash on hand for property taxes, insurance and closing costs as some of them would require an upfront payment. 

If you are looking for a refinance, All Western Mortgage is a name you can trust to offer you best interest rates and most flexible terms. Call us on 702-850-2790 or click here to know more.