What do I need to know when refinancing my property?
Refinancing your property involves qualifying for, and be approved for, a new mortgage on your property. The new mortgage will pay off the old mortgage and any money over and above the payoff of the old mortgage and any outstanding liens on the property will be paid to you.
There are many reasons to refinance your property. If you are considering a refinance duPont Mortgage can guide you through the process and insure that you have the best opportunity to qualify. Refinancing can result in a lower monthly housing expense by reducing the interest rate and eliminating mortgage insurance (PMI). You may also qualify to receive cash from the equity in your property.
At duPont Mortgage we will help you to determine the value of the property. This is crucial to any refinance (unless you are considering HARP, VA or FHA Streamlined.) You need to know the value of the property to determine if you have sufficient equity in your home to qualify for refinancing. Equity is defined as the difference between the property’s fair market value and the outstanding balance of all liens on the property. Call duPont Mortgage and we can assist you in determining the current market value of your home and how much equity you currently have in the property.
After we have determined the amount of equity in the property, we will determine the different refinancing programs that you may qualify for based upon your needs. Is your goal to lower your monthly housing expense or pay off your mortgage faster? Refinancing into a lower interest rate while simultaneously shortening the term of your mortgage may result in large savings over time and faster building of equity.
Other factors to consider include the cost of the refinance (there are closing costs, etc.) versus the monthly savings that the refinance will result in. If you have consumer debt (such as credit card balances) that you will be paying off with refinancing funds, we can also help you consider that savings. At duPont Mortgage we will do these calculations with you to determine your “break even” point.
Types of purchases: