{"id":5722,"date":"2021-01-29T09:00:16","date_gmt":"2021-01-29T14:00:16","guid":{"rendered":"http:\/\/migonline.com\/blog\/?p=5722"},"modified":"2021-01-25T14:14:21","modified_gmt":"2021-01-25T19:14:21","slug":"the-ins-and-outs-of-refinancing","status":"publish","type":"post","link":"https:\/\/migonline.com\/blog\/2021\/01\/29\/the-ins-and-outs-of-refinancing\/","title":{"rendered":"The Ins and Outs of Refinancing"},"content":{"rendered":"<p>At some point, homeowners\u00a0may think it&#8217;s <a href=\"https:\/\/migonline.com\/time-to-refinance-2.\">time to\u00a0refinance<\/a>\u00a0their home. There are a variety of good reasons to refinance, but a big decision like this shouldn&#8217;t be made lightly. Thinking about your options and weighing the pros and cons for your situation are\u00a0essential.<\/p>\n<figure id=\"attachment_4772\" aria-describedby=\"caption-attachment-4772\" style=\"width: 600px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4772\" src=\"http:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_45934253_xl-2015.jpg\" alt=\"Home Ownership in 2020: Mortgage Rates Hit 3-Year Low \u00a0\" width=\"600\" height=\"450\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_45934253_xl-2015.jpg 800w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_45934253_xl-2015-300x225.jpg 300w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_45934253_xl-2015-768x576.jpg 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-4772\" class=\"wp-caption-text\">Home Ownership in 2020: Mortgage Rates Hit 3-Year Low<\/figcaption><\/figure>\n<p><strong>Reasons Homeowners Refinance Their Mortgage<\/strong><br \/>\nSome of the most common reasons we see for choosing to refinance are:<\/p>\n<ul>\n<li><strong>Lower interest rate.<\/strong> If your mortgage interest rate is two or more percentage points higher than the current offering, think seriously about refinancing.<\/li>\n<li><strong>Cash out equity.<\/strong> Need cash for sending your kids to college, home renovations, or to pay off debt? Refinancing to pull out some of your home\u2019s equity may be smart.<\/li>\n<li><strong>Remove PMI<\/strong>. If refinancing a lower amount gets rid of expensive private mortgage insurance (PMI), it may be worth it.<\/li>\n<li><strong>Move from variable to fixed rate.<\/strong> Reduce your risk of your variable mortgage rate increasing by refinancing into a fixed rate.<\/li>\n<li><strong>Decrease length of note.<\/strong> Get out of debt quicker with a shorter-term mortgage.<\/li>\n<li><strong>Decrease mortgage payment. <\/strong>Has your household lost an income? Refinancing to a lower rate or to increase your length of mortgage can decrease the strain on your monthly budget.<\/li>\n<\/ul>\n<p><strong>The Best Time to Refinance<\/strong><br \/>\nDepending on your situation,\u00a0there\u2019s rarely a bad time to refinance. However, refinancing when rates are low is a prime time that offers distinct advantages. Another smart time is if your home has increased in value, which could help you get out from under PMI.<\/p>\n<p><strong>What Loan Options Are Available?<\/strong><br \/>\nHomeowners wanting to refinance can choose from several loan options, including different lengths (15, 20, and 30 years are the most common). You can also pick a cash-out refinance or a regular one. You may choose to use an <a href=\"https:\/\/migonline.com\/fha-loans\">FHA loan<\/a> or VA loan.\u00a0In addition, homeowners don\u2019t have to refinance their new loan with the lender they originally used for their mortgage.<\/p>\n<figure id=\"attachment_4774\" aria-describedby=\"caption-attachment-4774\" style=\"width: 600px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4774\" src=\"http:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_24522481_xl-2015.jpg\" alt=\"Home Ownership in 2020: Mortgage Rates Hit 3-Year Low \u00a0\" width=\"600\" height=\"400\" srcset=\"https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_24522481_xl-2015.jpg 800w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_24522481_xl-2015-300x200.jpg 300w, https:\/\/migonline.com\/blog\/wp-content\/uploads\/2020\/02\/Depositphotos_24522481_xl-2015-768x512.jpg 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-4774\" class=\"wp-caption-text\">\u00a0<\/figcaption><\/figure>\n<p><strong>How the Process Works<\/strong><br \/>\nContact a mortgage loan officer as you did when you first bought your home. They\u2019ll pull your credit, take your application, review your finances, and walk you through your options. You will most likely need to get your house appraised and proceed to closing.<\/p>\n<p><strong>Should Homeowners Who Are Underwater Refinance?<\/strong><br \/>\nMany people who refinance do so to tap into their home\u2019s equity. What if\u00a0you owe more on the property than it\u2019s worth? There are refinancing options for you, too. If you\u2019re underwater with your mortgage and can\u2019t qualify for a traditional refinance, you may be able to use the Freddie Mac Enhanced Relief Refinance program. You may only use this if Freddie Mac owns your loan. Streamlined refinance programs might also be available to you. Your lender can help you navigate your options.<\/p>\n<p>There are many great reasons to refinance your home. Think it could benefit you?\u00a0<a href=\"https:\/\/migonline.com\/refinancing\">Turn to a mortgage loan officer<\/a> at Mortgage Investors Group to find the best refinancing rate for you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At some point, homeowners\u00a0may think it&#8217;s time to\u00a0refinance\u00a0their home. There are a variety of good reasons to refinance, but a big decision like this shouldn&#8217;t be made lightly. Thinking about your options and weighing the pros and cons for your situation are\u00a0essential. Reasons Homeowners Refinance Their Mortgage Some of the most common reasons we see &hellip; <a href=\"https:\/\/migonline.com\/blog\/2021\/01\/29\/the-ins-and-outs-of-refinancing\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">The Ins and Outs of Refinancing<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5718,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78],"tags":[],"class_list":["post-5722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-refinance"],"_links":{"self":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/5722","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/comments?post=5722"}],"version-history":[{"count":1,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/5722\/revisions"}],"predecessor-version":[{"id":5723,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/posts\/5722\/revisions\/5723"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media\/5718"}],"wp:attachment":[{"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/media?parent=5722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/categories?post=5722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/migonline.com\/blog\/wp-json\/wp\/v2\/tags?post=5722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}