Refinancing Can Leave You With Questions, We Have The Answers
Situations change all the time, so why should you be locked into a set mortgage forever? At Liberty, we want to help put you in the best position possible. Refinancing allows you to change the terms and rates of your loan or get cash when you need it. Two types of refinancing to consider are rate-and-term refinance and cash-out refinance.
- Rate-and-Term Refinance
A rate-and-term refinance is a common refinancing option when interest rates go down. Borrowers take advantage of this by refinancing and having lower interest rates. You may also change the term in order to pay off your mortgage sooner which allows you to save significantly on interest payments.
- Cash-Out Refinance
A cash-out refinance gives borrowers the option to convert home equity into cash. A new, larger mortgage is created and allows the borrower to get the difference between the two loans in cash. Many borrowers use this to consolidate debt, improve your home, pay for tuition, etc.