When you refinance your mortgage, you enter into a process that replaces your existing mortgage with a new mortgage. When a refinance is done, it allows the existing loan to be paid off and the new loan to replace it. As a borrower you might want to refinance for any of the following reasons: convert a variable rate to a fixed rate, obtain a lower interest rate, shorten or lengthen the term of your mortgage, eliminate PMI, avoid a balloon payment, or you may even want to obtain money for debt reduction, large purchases, college tuition or any other reason.
There are fees involved with a refinance which many times can be rolled into the new loan. Speaking with a qualified mortgage professional is recommended to determine whether or not a refinance makes sense for you right now.
If you are uncertain as to whether or not a refinance would be in your best interest for your overall goals, please contact us at (888) 963-3565. Encompass Lending Group has a team of experienced loan officers that will consult with you and will help you determine the refinancing that makes sense for you and your needs.