A Cash Out Refinance is a type of mortgage
transaction that enables members to utilize the equity
in their home above and beyond their current first mortgage
balance. This allows the borrower to get cash out of
their home by financing a higher loan amount at new loan
terms. A cash out refinance is a popular vehicle in which
to meet your borrowing needs. It is also a terrific way
to consolidate debts and pay for home improvements. Members
often select a cash out refinance to roll together an
existing first or second mortgage to secure a lower payment
and/or reduce interest rates. The reasons for selecting
cash out refinances are unlimited.
A Rate/Term Refinance is designed for
members looking to either change their interest rate
or their term on their current mortgage. This loan is
tailored for members who do not want to increase their
existing mortgage balance. Members may select this product
if their goal is to convert an adjustable rate mortgage
(ARM) to get a secure, fixed loan rate. This is also
a popular product for members who want to pay off their
mortgage sooner by reducing their mortgage term down
to 25, 20, 15 or 10 years. Conversely, this is
also
a great product for people who have a shorter term
mortgage and wish to increase monthly cash flow by stretching
out their original mortgage term.
Each individual’s objectives
for refinancing are different. Please consult a Mortgage
Officer to discuss the terms and conditions that may
be applicable to your borrowing needs.
