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Refinances

You can skip two monthly mortgage payments when refinancing. If your refinance loan funds between the 1st-15th of the month, you will skip two monthly mortgage payments without a late fee. If your refinance loan funds between the 16th-31st of the month you will still skip two monthly mortgage payments, but you will be subject to a late fee from your current mortgage lender.

Closing Costs can be included into a refinance loan as long as you have enough equity to cover them. Clients also always ask if they refinance will their property taxes increase? No. Your property taxes should not increase just by refinancing. Property taxes increase when there is a change made on the title of the home for example adding or removing someone from the title may trigger a property tax increase.

Generally there are two types of Refinances.

Rate and Term Refinance
A rate and term refinance allows you to change the terms of your current mortgage by lowering your interest rate and changing your loan term to a longer or shorter period.
Cash-Out Refinance
A cash-out refinance is a way to both refinance your current mortgage and borrow additional money at the same time. You refinance your current mortgage and receive a check at closing for the cash you took out of the equity in the home.
You replace your current loan with terms that are more favorable to you. You get a new loan, pay off your old mortgage loan and then make payments toward your new loan when you refinance. Generally, you will receive a lower interest rate and closing costs on rate and term refinance versus a cash out refinance.

Below are 2 examples of rate and term refinances without taking any cash out of your equity in the home.

Refinancing from a 5% interest rate down to a 3% interest rate to save money on your monthly payment

OR

Refinancing from a 30 year fixed loan down to a 15 year fixed loan to pay your home off faster
The balance owed on your new mortgage will be higher than your old one by the amount of cash you took out, plus any closing costs rolled into the loan. Cash-Out refinances are used to pay off high interest rate debts such as credit cards, auto loans, personal loans, or funds can be used to remodel your home to increase the value, or to purchase additional properties. You will also receive a tax write off on the mortgage interest, where you usually do not receive a tax write off for credit cards, personal loans, or auto loans etc.
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