Refinance Your House Overview
Want a lower payment? Need Cash to pay off high interest rate credit cards or pay off 2nd mortgage? Want to pay off your loan faster? Find out how a refinance can help you get your mortgage in a better place with Security Financial Services.
Refinancing is often used to lower your interest rate. If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan or to extract cash equity in your home (cash out). A few reasons for cashing out include: home improvement, an education fund, and consolidating and paying off high interest rate debt.
Another way to convert equity in your home to cash is a "home equity" loan. A "home equity" loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan. Currently home equity loan rates are much higher than in recent years past and first mortgage interest rates have recently declined more than 2nd mortgage rates. Also home equity 2nd mortgages typically are not fixed and therefore those rates can increase anytime the Fed chooses to increase the Fed Funds Rate.
- Reduce Your Interest Rate
- Cash Out Equity for Home Improvements
- Consolidate Debt
- Lower Monthly Payments