Elite Financial Home Loans

Refinancing can be effective if you consider your refinancing goals and select the option that may be right for you. Consider the following.
If your goal is to:

Reduce monthly payments

• You can reduce your payment by refinancing when interest rates drop sufficiently below your existing rate.
• As another option, you can refinance to a longer term mortgage to lower your monthly payment, though you will raise your overall interest costs.
• With either option, you can pay discount points to further reduce your interest rate.

Repay your mortgage faster

• Refinance to a shorter term to raise monthly payments for faster repayment and reduce your overall interest payments.
• If interest rates are low enough, you may be able to get a shorter-term loan for faster repayment without a significant increase in your monthly payment.

Access home equity while lowering payments or repaying faster

• A cash-out mortgage refinance can affect your mortgage interest rate and provide funds for home improvement, debt consolidation, and other major expenses.

Plan for an adjustable-rate mortgage (ARM) interest rate change

• You can explore your options before your payment adjusts to see if refinancing may be right for you.

Access the available equity in your home without reapplying (if you qualify)

• You complete only one application, work with a single contact, and attend one simultaneous closing transaction for both products.
• You can choose from a variety of financing options.

Source: www.Wellsfargo.com