Get better loan terms with a strategic refinance
If you have a mortgage that’s too risky or too expensive to continue paying, you may be able to refinance* and get a better loan. Your circumstances may have changed since you first applied for the loan, so more advantageous terms are now available.
PRMI helps New Hampshire homeowners determine whether a refinance is a wise financial move, considering your current situation. If it is, we’ll help you look for the most favorable deal and guide you throughout the process. We are also licensed in Maine, Massachusetts and Florida and have helped many borrowers in those states accomplish their financial goals and reduce debt via refinance.
When should you refinance your loan?
Refinancing means getting a new loan to pay off the remainder of an existing one. For a mortgage refinance to be beneficial, your new loan should have better terms than the first. Otherwise, you may end up in more debt.
1. When it will reduce your interest rate
A lower interest rate means lower monthly payments, which can give you significant savings over the life of the loan. Look for a loan that will give you at least a 2-point reduction in interest rate.
2. When you need to adjust your loan term
A shorter loan term is another good reason to refinance. It lets you pay off your debt faster, so you can pursue other financial goals. Note that a shorter paying period may increase your monthly payments.
On the other hand, you can also get a longer-term loan in case you encountered unexpected expenses, warranting lower monthly payments. Your dues will be spread out over a long period, either 15 or 30 years.
3. When your credit score has gotten better
Your credit score primarily influences the interest rate you’ll get. The better your score, the lower the interest. If your credit has improved since the first time you bought the house, you can get a mortgage with better terms when you refinance.
4. When you need to tap into your home’s equity
A cash-out refinance lets you take a partial or lump-sum withdrawal from your home’s equity, which is the portion of the property you’ve already paid. Get a mortgage with a larger amount than your current one. The new loan will pay off the remaining balance of your old mortgage. You’ll receive the rest of the loan amount in cash.
Refinancing Options in New Hampshire
You can refinance your FHA or USDA loan with a conventional mortgage, which eliminates the monthly fees associated with government-backed loans. Conventional refinancing may also be a good strategy toward managing your mortgage insurance.
New Hampshire Housing offers two refinancing options:
- Home Flex Refinancing: VA, FHA and USDA loan borrowers can qualify for a Home Flex refinance. This program has low interest rates and zero appraisal requirements.
- Home Preferred Refinancing: This conventional refinancing option can provide an up to 97% loan-to-value ratio. It requires a low mortgage insurance coverage and only allows limited cash-outs.
Loan Specialists in Concord
Primary Residential Mortgage helps New Hampshire homeowners acquire better loan terms through refinancing, making homeownership an easier, more positive experience. With our knowledge on local mortgage processes, you can depend on us to provide you with strategic guidance on your loan applications.
Contact our mortgage specialists at PRMI Concord today to learn more about refinancing and how it can help you be more financially secure.