There are a number of reasons to consider refinancing the loan on your home. Some people refinance as a way of taking advantage of lower interest rates, enabling them to reduce their monthly mortgage payments. Some refinance to a shorter-term mortgage, which enables them to build equity in their homes faster. And some homeowners refinance to tap into the equity they've accumulated in their houses, using the funds for home improvement or other needs, such as debt consolidation or their children's education.

Do you want to take advantage of these benefits, but wonder if refinancing will be worth the time and money you'll need to invest? Do you feel unsure about the entire refinancing process?

Don't worry. The refinancing process is very simple. It involves paying off your existing mortgage loan and taking out a new one on the same house. Your new mortgage loan could be at a more attractive interest rate, or for a different term. Or, you could get an entirely different type of loan — for example, you could switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

Do you want to take advantage of these benefits, but wonder if refinancing will be worth the time and money
you'll need to invest? Do you feel unsure about the entire refinancing process?

Questions to Consider?

When considering whether to refinance, you need to consider the following questions:
What are your reasons for refinancing?
How long do you plan to stay in your home?
How much equity do you have in your home?
What is the interest rate of the existing mortgage?
What is the interest rate of the new mortgage?
What is your current income and credit status?
How much will it cost to refinance?
How long will it take you to recoup the cost of refinancing, and is it an acceptable period of time?
If you're refinancing to lower the monthly cost of your mortgage, keep in mind that you may need to stay in your home for several years to recoup the cost of refinancing. To estimate the amount of time it would take to recover refinancing costs through a lower monthly mortgage payment, use our Refinance Calculator, or simply divide your total refinancing cost by your total monthly savings. For example, if your refinancing costs will be $2,500, and your monthly savings will be $100, then you'll need to stay in your home 25 months or more (2,500 ÷ 100 = 25) to recoup the cost of refinancing.

Cash out on your home equity.
Your home is a great resource for extra cash if you have equity. You can use the cash to finance your child's education, pay for home improvements, consolidate high interest debt, or take a vacation. With a cash-out mortgage refinance transaction, it's easy. And it’s even tax deductible.

Call and speak with a Franklin Mortgage representative to see if refinancing makes sense for you

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