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Refinance: What Are The Differences?

INTRO

Have you wondered what the difference between all the refinance options are? This report will break them down for you, so you can see which would work best for you.

REPORT

With interest rates at record lows there has been a lot of talk about how right now is the best time to refinance. If you’ve looked into it, you might have heard of a few different types of refinances mentioned. The first being to just refinance an existing loan, or to do a “Cash-Out” to pull money from your existing home.  Then there is the HARP program created by the government to help people who have tired to refinance before, but weren’t able to. Depending on your situation or what you are looking to do with a refinance this report will help you understand the difference so you can figure out which one is right for you.

Refinancing Your Loan– When you refinance you basically obtain a new loan to pay off an older one. The main purpose to refinance your loan is to get a lower interest rate, which means you spend less money each month on your mortgage. When you purchase your current property there was a certain interest rate that you got. Now with interest rates at record lows, there is a big chance that the rate you got then is higher then they are now. Because of that you could be paying more for your home with that old loan then you could with a refinanced loan.

If you are looking to take advantage of historic low rates, so you can lower your monthly mortgage payments you need to look at a refinance loan.  Here are few options for a refinanced loan:

  • 15-year refinance loans. Fifteen-year refinance loans are a popular option if you’ve paid off part of your existing mortgage and don’t want to restart the clock on a new 30-year refinance loan. Fifteen-year refinance loans generally offer a lower interest rate, but have a higher monthly payment than 30-year refinance loans.

 

  • 30-year refinances loans. Refinance loans with a new 30-year term may be a good choice for you if you want to lock in a fixed interest rate, but don’t want to commit yourself to a higher payment.

Whether you choose a 15-year or 30-year refinance loan, consider the total interest expense as well as the new interest rate and payment.

Cash-Out Refinance– If your home is worth more than you owe on the existing mortgage you can use a cash-out refinance loan to gain access to extra cash. You can’t get a cash-out refinance loan if you owe more than your home is worth.

For example if you owe $80,000 on a home valued at $200,000 it has $120,000 in equity. That equity can be liquidated with a cash out refinance loan providing the loan is larger than $80,000.

If you need the extra cash to pay off debts, pay for home improvement projects, a child’s college, or even a vacation a cash out refinance is for you.

HARP Refinance-The Home Affordable Refinance Program or HARP 2.0 is a newer program started in 2009 that can help you refinance if a traditional refinance hasn’t worked for you because your home’s value has declined. This is not a program for you have not been paying your mortgage payments. This is a program for you if you have been responsible with your mortgage payments and also not missed a payment in the last 12 months. Now because of the decline in the price of your home, you have been stuck and not able to take advantage of saving money on their mortgage with a refinance. Rates are at historic lows, so the HARP program has been created so more people can take advantage of them and lower their monthly payments.

Contact us today and we can figure out which refinance program will work best for you


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John McCoy and his staff are just outstanding! Their efficiency and ability to respond quickly to any of my questions and needs is what made the... difference in me getting my house so quickly. It only took 3 weeks because of their ability to expedite m paper work quickly to those that needed it, along with my clean credit! Thank you so much for all your hard work! Each one of you!read more
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John was the one who took a chance on me and my wife . Thank you so much for changing our lives and putting us in our new home . If anyone out there... needs someone to help them make there dreams come true reach out to John and the professionals mbn financial.trust me they won’t let you downread more
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What an amazing experience! John and his team were extremely responsive and easy to work with! They made the loan process easy and never hesitated... to answer our questions. I would recommend John the Mortgage Man to anyone looking for a loan!read more
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Working with John McCoy was very easy and convenient. He walked us through the entire loan process with excellent communication and knowledge. We... were in a time crunch to purchase a home before the end of the year, and John worked fast to make it happen. Would highly recommend!read more
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John has helped me purchase 2 houses! John is easy to talk to and makes you feel like family. He is the best person you could have to help you in... this process! John will make it happen! Thank goodness he came highly recommended to me. John is truly a hero!read more
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John McCoy has been our "mortgage man" on two purchases. Both went smoothly without a complication. The money and timeline were exactly what he... represented. I have recommended him to many looking for a mortgage. If you are looking for An honest, smooth mortgage progress, call "Jo John, the Mortgage Man". Way to go "Mortgage Man"!read more
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John and his team worked diligently to make the process as easy as possible. They kept me informed and sent me step by step what they were doing so I... always knew where we were in the process. I had a very low credit score and they still made it happen! Thanks John, Troy, Allan and the whole team.read more
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John and his team are excellent at what they do. Very friendly and helpful, yet also down to earth and realistic about your ability to attain such... and such mortgage. John will let you know if your "dreams" are a match with the reality of your financial situation. John wants you in a mortgage, but he wants you in one you can afford comfortably. I had numerous questions throughout process, and John gladly answered each and every one. I am very grateful my wife and I chose John, and would do so again if/when we have other mortgage needs. If you're ready to buy a home, you wont be disappointed with John McCoy!read more
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John the Mortgage Man worked to get me and my wife into our first home this year! We had some issues with low funds, high debt and bad credit, but... John helped us to determine how much we needed to save up to get in the home we wanted. Once we got there John was able to hook us up with a lender and get us a good deal on a loan. We closed in just over two weeks from the time we found a house that we wanted! John always made us feel at ease and answered any questions we had. Very knowledgeable, very responsive and very kind! Thank you John for everything! Highly recommend!!!read more
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John McCoy NMLS #308360
NEXA Mortgage, LLC NMLS# 1660690
AZMB 0944059

John The Mortgage Man
NEXA Mortgage, LLC
3100 W. Ray Road, Suite 201, Office 209
Chandler, AZ 85226
(361) 510-1420johnthemortgageman@hotmail.com