A refinance is simply replacing your current loan with a new loan. When you choose to refinance, you can expect to follow the same application process as when you originally purchased your home. Making the decision to refinance is often based on a number of factors that include:
- Taking advantage of lower interest rates.
- Reducing your interest rate risk by switching from an adjustable-rate or balloon loan to a fixed-rate loan.
- Reducing the amount of interest paid over the life of your loan by shortening the term of your loan.
- Paying off your home sooner by reducing the term of your loan.
- Taking advantage of available equity in your home to pay off other debts or make improvements to your home.
Although your monthly savings may be substantial, you will incur some closing costs. Typically you can count on up to 2-3% of the new loan amount in closing fees in addition to title insurance. Regions will estimate your closing costs for you when we receive your completed application. Many of these closing and prepaid items are typically financed into the loan amount.
Ask Regions to compare your expenses for various loan programs. In most cases you will be eligible for differing loan programs so be sure to consider your options to find the one that best suits your financial situation.
Whatever your home financing needs, Regions Mortgage is here to help you every step of the way. Please locate a Regions Mortgage Loan Originator or give us a call today at 1-877-536-3286 and we will be happy to assist you in selecting the right loan or answering any questions you may have.