The process of refinancing a home means taking out a new loan to replace a current one. Homeowners who are currently paying off a home loan can apply and be approved for refinancing.
By refinancing, you can access the equity of your home through a Cash-Out Refinance option. You can also refinance to obtain a new, lower interest rate through a Rate & Term Refinance option. Refinancing also allows homeowners to pay off their mortgage more quickly if they desire to do so by changing their loan term from a 30-year mortgage term to a 15-year mortgage term.
If you’re a homeowner and find it difficult to make high mortgage payments, refinancing might be something to consider.
We often recommend refinancing to our clients who have good credit scores or sufficient income / home equity. The higher the score, the likelier you will be approved for a new loan. Once you have been accepted for a new loan, try to avoid using your credit cards excessively to help prevent your credit score from changing while your application is being reviewed.
For any further inquiries about refinancing a mortgage, Contact NEO VA Loans Team today!
