Refinancing

Is refinancing right for you?

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Is refinancing right for you?

Here are the most common reasons for refinancing:

  • You have a fixed-rate mortgage with a high interest rate, and are looking to get a lower interest rate
  • You have an adjustable rate mortgage (ARM) and are looking to get a fixed rate
  • You have two mortgages and would like to consolidate them into one
  • You have a long-term loan and would like a shorter-term loan so you can pay it off and build equity more quickly
  • You have a short-term loan and would like a longer-term loan so as to reduce your monthly payments
  • You want to move from an interest-only mortgage to a loan that pays down the principal
  • You want some extra cash to make a purchase or to pay off other debt
Mortgage Banker
Mortgage Loan

Benefits of refinancing

Refinancing makes sense if you fit into one of the categories listed above. If you’re curious about your specific scenario, reach out today and we’ll take a look!

Four common refinancing options:

Cash-Out or Cash Back Refinance

This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.

Lower Fixed-Rate Loan

If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.

Shorter-Term Loan

If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.

Longer-Term Loan

If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.

Brian Mozley

Owner + Loan Officer  //  NMLS #196061

Brian Mozley was raised in Albuquerque, graduating from Manzano High School in 1999.  He went on to study business finance and economics at the University of New Mexico.  After working in sales for his father’s Albuquerque local business, Brian decided to venture into a field that put his finance degree to better use.  Brian loves helping people with their finances and views the mortgage industry as the perfect vehicle to do so.

Brian has been in the mortgage industry now for over 12 years and has extensive knowledge of what loan products are available, and how guidelines change in an ever-changing market.  Brian’s goal is to create great long-term relationships with his clients that go beyond a one time purchase or refinance of their home. He becomes involved by interacting closely with people and helping them to fulfill their dreams of being a homeowner. Brian’s heart is in his work which ensures our clients have a great experience. He believes that it is important to make sure that his clients are informed about how the mortgage process works whether purchasing a home or refinancing a home.  Brian is excited about the direction the housing market is going and believes that the appropriate steps have been taken in the industry to make sure that previous mistakes in the market are not repeated.

Brian is actively involved in his local church, helping with the worship team and youth group.  His faith is in the Lord Jesus, and he is thankful for God’s grace in his life.

brian@fmshome.com(505) 363-1580Apply Now
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