Love the Home You’re In!
No need to ditch your digs if you love where you’re at! Refinancing your home or tapping into your home’s equity can be excellent maneuvers when you want to stay put.
Many homeowners refinance their mortgage because they want to take advantage of better mortgage interest rates or change their loan term. Others would rather use their home’s equity to pay for larger expenses (e.g. college tuition, medical bills) by opting for a cash-out refinance.
What’s the difference between a refinance, a cash-out refi, and a HELOC?
- A refinance means replacing your existing mortgage with a new one, often to take advantage of better rates and terms.
- A cash-out refinance means replacing your existing mortgage with a larger, new loan for a lump sum payment that you can use for a number of things.
- A HELOC, or Home Equity Line of Credit, is a revolving line of credit based on your home’s equity and using your home as collateral.
What you need may depend on what you want to do, so think about your reason for wanting to refinance before you take the plunge!
SuperSaver Refinancing – An Exclusive for Sharonview Mortgage Holders!
Need some extra breathing room to make those big plans? Sharonview mortgage holders can now get exclusive savings with a SuperSaver Refi! Borrow up to 80% of your home’s appraised value and get on with your life! Learn more about the SuperSaver by contacting a Mortgage Loan Officer today!
What else should I know?
It’s important to note that refinancing isn’t free. Each of the options above do come with associated costs.
Refinancing your home through a traditional refi or cash-out refi is a lot like closing on your home the first time. You’ll have to go through an appraisal process, a credit check, and closing, all of which may require fees. Closing costs, for example, tend to range about 2-6% of your loan amount. These charges can impact your overall savings and your bottom line when it comes to making a decision. It can be a time-consuming process to gather documentation, so make sure to plan ahead.
HELOCs, on the other hand, typically have lower closing costs, but do come with origination fees and require documentation as well. Click here for more information on Sharonview HELOCs.
What should I do?
Before making a decision, consider some of these thought starters to frame your refinance:
- What’s your motivation for wanting to refinance?
- If wanting to use your home’s equity, what would you use it for?
- Is a lump sum or revolving line of credit more beneficial to your goals?
- Can you absorb a new monthly payment?
- Are you open to a longer mortgage term?
- What’s your current credit score and DTI (debt-to-income ratio) look like?
- Are you planning to move within the next few years?
- Depending on your existing mortgage, are you within the limits of refinancing?
- Some government-backed loans have waiting periods before they are eligible for refinancing.
- Does a refinance align with your short- and long-term financial goals?
Ultimately, the choice is yours! If you need help, why not call one of our Mortgage Loan Officers? It’s risk free and will give you the confidence you need to get ahead.
Membership eligibility required. All offers subject to credit approval. Jumbo mortgages are for loan amounts exceeding $832,750 (with a maximum of $2 Million.) Jumbo mortgages over 80% loan-to-value (LTV) usually require mortgage insurance. Different programs have different credit score and LTV requirements. Condominiums, second homes, and investment properties may be ineligible for certain programs. Additional property and borrower eligibility restrictions may apply; contact us for details. Applications accepted for properties located in NC, SC, NJ, PA, VA, TN, GA, FL. Third-party charges, origination fees, points and interim interest may apply. Terms and conditions subject to change without notice.