Rate Term Refinance
Rate Term Refinance
When seeking to refinance your mortgage, you have two options to choose from.
When seeking to refinance your mortgage, you have two options to choose from. You can either change the terms of your current loan without advancing any new money or take another large mortgage to replace your old one and receive money on top of the new loan. With rate and term refinance, you can change the rate and term of your existing mortgage but without taking on some cash on top of the existing mortgage.
In other words, rate term refinance in Raleigh is a refinancing option for an existing mortgage loan for an equal or less amount than the current outstanding loan balance. The refinance can lower the interest rate charged on the mortgage loan, change the mortgage terms, or both. This option gets you less or more time to pay off your debt, a lower interest rate, or a lower monthly payment.
Several types of mortgages qualify for a rate term refinance, for instance, FHA, USDA, VA, and conventional loans.
Qualifying for a Rate and Term Refinance IN Raleigh
Like any other loan product, you must meet a set of requirements to qualify for a rate and term refinance in Raleigh. These include a credit score threshold (often above 620), a favorable debt-to-income ratio (not more than 36%-40%), and good home equity (at least 20%).
At GoNoCost, we help our clients understand how this loan product can help them clear their debts in time or lower their monthly payments so they can meet other financial obligations. And since everyone’s financial situations are different, we’ll adjust the terms to suit your unique needs.
Why Rate and Term Refinance?
There are several reasons why rate and term refinance loans are popular among homeowners. Here are some of its main advantages:
Lower interest rate
A rate-and-term refinance could help you lower your interest rates on your mortgage loan. If you are currently paying a higher interest rate, you can lock in a lower rate and save thousands or even more over the mortgage lifespan.
Low monthly payments
With this loan option, you can lower your monthly mortgage repayment amount and lower your financial burden. You just have to refinance and choose to increase your repayment period, and you’ll automatically reduce your monthly payments.
Change your repayment term length
Change your repayment term length. Depending on your financial needs and preferences, you can also choose to shorten your mortgage loan repayment period to pay off the home faster.
Let Us Know Your Preferences
Not everybody wants to secure an additional loan on top of their mortgage. Some just want to modify the interest rates and repayment terms to lower the loan cost. Our rate and term refinance could be your ultimate solution if the latter is what you want.
Keep in mind that it’s often easier to qualify for a rate and term refinance than it is to qualify for a cash-out refinance. This is because the cash-out option requires a higher credit score and a lower loan-to-debt ratio. The tougher terms also mean the loan comes with higher risk; hence, the higher rates.
Before taking a refinance loan option, you want to discuss options with our loan professionals to gather enough knowledge about the available loan products. For many people, avoiding the added cost of a cash-out loan is a worthwhile financial move. However, some have specific reasons for taking that extra cash, and the loan could be valuable in the long run.
A key point to note is that there’s no right or wrong way of refinancing your existing mortgage. You just have to understand your unique financial needs and the implications of taking a particular refinance loan in Raleigh. Depending on your financial situation and goals, we will walk you through the rate and term refinance loan process, one step at a time.
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Financing your home is easy. Refinancing it is even easier. You just need to find a transparent lender or a reliable online mortgage advisor to guide you throughout the mortgage financing process. GoNoCost Mortgage has those people.