Category: Refinance

Saving time and money with low cost FHA streamline refinancing

Homeowners who hold a current FHA mortgage may be able to take advantage of the government-insured low-cost refinancing program. If today’s lower interest rates have you considering a refinance, this simplified, streamlined option for FHA borrowers could be a great idea.

What is an FHA Streamline Refinance?

The Federal Housing Administration (FHA) insures select mortgages to help borrowers access affordable home financing. Through FHA loans, home buyers can usually get a competitive interest rate with less-than-perfect credit and a low down payment. When FHA mortgage borrowers decide to refinance, they can use the FHA Streamline Refinance program to lock in a lower rate, thereby saving them money throughout the life of their loan, as well as potentially saving money month-to-month. Continue reading Saving time and money with low cost FHA streamline refinancing

Using the Equity in Your Home to Help with Expenses

Owning a home can be a great source of pride and satisfaction. It can also be a great investment over the long term. As your home builds value and you continue to pay off your mortgage, your home builds equity—which can be tapped into to help pay for expenses. Instead of relying on high-interest credit cards or personal loans, homeowners who have sufficient equity in their homes can access funds through refinancing.

Cash Out Refinancing

If you find yourself in need of some extra cash, your home may be a source of funds you’ve overlooked in the past. With a Cash Out Refinance, homeowners can refinance their mortgage for more than what they owe and receive the difference in cash, helping them pay off other debts, fund a special home improvement project, start a small business or anything else they want. While Cash Out Refinancing may not be an ideal solution for every homeowner, it can be a much more beneficial alternative to taking out personal loans or opening a line of credit. Continue reading Using the Equity in Your Home to Help with Expenses

Mortgage rates are super low. Is it time to refinance?

As the world economy copes with the growing concerns amid COVID-19, as well as political factors, mortgage rates are nearing historic lows. While we at Luxury Mortgage acknowledge the seriousness of this illness and advise everyone to take precautions, it should also be noted that the silver lining in any economic slowdown is access to more affordable credit. For homeowners especially, this could be an ideal time to take advantage of low refinancing rates.

Refinancing Applications Spike

Refinancing applications increased a whopping 79% last week and were a staggering 479% higher than they were a year ago, according to recently released data from the Mortgage Bankers Association (MBA). CNBC’s Diana Olick reported on the refinancing boom two days ago, pointing out that the current figures are the highest on record since April 2009.

Low Rates Could Mean Big Savings

The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($510,400 or less) was 3.47% at the time of the article’s publication. This average matched the MBA’s December 2012 survey low, showing evidence that rates this low haven’t been seen in nearly eight years.

“Taking into the account the current economic situation and how much rates have fallen, MBA is nearly doubling its 2020 refinance originations forecast to $1.2 trillion, a 37% increase from 2019 and the strongest refinance volume since 2012,” said Joel Kan, an MBA economist. “As lenders handle the wave in applications and manage capacity, mortgage rates will likely stabilize but remain low for now. This in turn will support borrowers looking to refinance or purchase a home this spring.”

Refinancing Options

Homeowners who choose to refinance to today’s low interest rates could effectively lower their monthly payments, helping them save tens of thousands of dollars in the long run. If you intend to stay in your home for a long time, a rate and term refinance could make a lot of sense. Luxury Mortgage offers competitive rates on rate and term refinancing loans, and our expert loan officers can help you navigate the process. If you’d like to learn more, click the button below to get started.

Alternatively, with a cash out refinance, homeowners can cash out their equity at low rates and use the funds for a wide variety of things. Whether you want to pay off higher interest credit balances, remodel your home, go back to school or even start your own business, the cash from a cash out refinance can work as a great financial tool.

For homeowners who want to reduce their loan terms and pay off their mortgages sooner, a refinance could mean shaving off several years’ worth of payments. Whether you want to switch from a 30-year to a 15-year or go from a 20-year to a 10-year loan, now could be the best time to lock in a great rate. The advantage of a shorter term mortgage is the ability to build equity faster and be mortgage debt free sooner. The drawback is that your monthly mortgage payments will more than likely increase, so only homeowners who feel comfortable paying more every month should consider this option.

Speak With Us Today

Not sure if refinancing makes sense for your scenario? Curious about the pros and cons of each refinancing option? Let the loan consultants at Luxury Mortgage help you compare the choices and see what could work best for you. Connect with us by clicking the button below or by calling us toll-free at 888-379-0303.


Cash Out Refinancing Options

Family home and cash

Today’s mortgage rates are very low, making it an ideal time for equity-rich homeowners to explore cash out refinancing options. If you’re thinking of applying for a cash out refinance, Luxury Mortgage offers this option in a variety of loan products. We will highlight these products in today’s post and offer a simple overview of the cash out refinancing process.

What is a Cash Out Refinance?

In a typical rate and term refinance, a homeowner refinances their existing mortgage with a new one, usually with a lower interest rate or better terms. Traditional refinances cover the remaining balance of the old mortgage. However, with a cash out refinance, homeowners can refinance their existing mortgage for more than what they currently owe and receive the difference in cash. The amount they can receive depends on how much equity they have in the home and the guidelines can vary depending on the type of home loan program they’re using for the refinance.

Types of Cash Out Refinance Loans

Luxury Mortgage is pleased to offer cash out refinancing options for several of our mortgage products. Continue reading Cash Out Refinancing Options