Presently, interest rates are very low so now may be the time to consider doing a mortgage refinance. With rates at historic lows the monthly savings for refinancing your home loan can be great. But, borrowers should not refinance for the sake of refinancing. There are several good reasons to refinance your present property.
When to do a Mortgage Refinance
- When the interest rate you are going to refinance into is less than your present rate.
- Also, you want to make sure you are not going backwards on your mortgage. It is often a good idea to lower the amount of years on your present mortgage. By doing so, borrowers may save up to tens of thousands on their mortgage by simply taking 5 years off of their loan.
- Borrowers will also want to make sure that the mortgage refinance makes sense. You will want to make certain that the present loan’s closing costs are not too high and that overall you will be saving money on the loan.
What types of properties can be refinanced?
The simple truth is that any property can usually be refinanced. Borrowers will want to make certain that their property is turn key. Meaning, that it will pass an appraisal and that no work will need to be done to the property in order to qualify for the loan. Commercial property, investment real estate, single family homes can all be refinanced.
Can a Cash Out Mortgage be done?
The answer is yes. On residential properties a cash out refinance is easily done, but the rate is always a bit higher than a non-cash out loan. A cash out refinance is usually most beneficial to a borrower when they are paying off high interest credit card debts and other loans. For a commercial mortgage, there is usually no difference in the rate if the borrower takes cash or doesn’t. What borrowers will want to be mindful of is the Loan to Value (LTV). Obviously your credit score is important for determining a rate. As well, your loan to value of the property determines what the interest rate will be. A good rule of thumb is that a borrower’s LTV should be 75% and under to still get a low rate when doing a cash out refinance.
So, How Do I Start the Mortgage Refinance Process?
To start the process all you need to do is click one of the two links by the phone number below. On link is for Connecticut residential property (one to four units) and the other link is for National commercial real estate. We pride ourselves on customer service and will work with you every step of the way to get your mortgage refinances into a better situation. I look forward to hearing from you.
Thanks,
Michael Meyer
President/Spartan Commercial Mortgage
Residential Mortgage Loan Originator for Northeast Financial
Personal NMLS #117875
Mike@spartancommercialmortgage.com
860-876-0572
Residential Clients: Click Here For Application
Commercial Clients: Click Here For Application
Northeast Financial NMLS #117273
48 Meriden Rd Middlefield, CT