Lowering Your Payment Is Now Easier Than Ever

Refinancing your mortgage loan means taking a new loan with different terms. In order to reduce your monthly payments, you’ll need a loan with at least one of the following factors.

• 1. A lower Interest Rate – The lower your interest rate, the less you ultimately pay for your home. A lower rate also means a lower monthly payment.
• 2. Getting Rid of Mortgage Default Insurance – When purchasing your home, if you put less than 20% down you will incur Mortgage Default Insurance. Once your home increases in value or if you have paid the balance down significantly, a refinance can help to remove this.
• 3. A Longer-Term Loan – When refinancing to a longer-term mortgage loan, you stretch the amount that you owe over a longer time frame, while this does cause you to pay more interest, it may provide much needed savings on a monthly basis.

Home equity refers to the appraised value of your home less the amount that you still owe on your mortgage loan.

Not only does having enough equity save you on Mortgage Default Insurance, but you also typically see a better interest rate based on the additional equity you have established. Use our refinance calculator to see if you have enough equity to help lower your payment.