Refinance Loans

CraterTeam.com is a nationwide refinance mortgage provider specializing in Conventional Conforming Refinance Loans, Conforming Jumbo Refinances and Non-Conforming Super Jumbo Refinance home loans, as well as Non-Conventional FHA Refinance, FHA Jumbo Refi and VA refinancing. In this market it is important to know the company you are working with. There are many reasons to refinance your home loan today. Now is the time to take advantage of the many relationships CraterTeam.com has established.

What is a Refinance Loan?

Refinancing is when a homeowner obtains a new mortgage to replace the original. Many lenders require you to stay locked in to the original loan for 12 months before you're eligible to refinance. Homeowners may choose to refinance for several reasons.

Refinancing may allow the borrower to receive improved interest terms and rates over their current mortgage. In this case, the first loan is paid off, allowing for the creation of a second loan. For borrowers with solid credit, this is a good way to transfer a variable loan rate over to a fixed rate, and secure a lower interest rate.

You can refinance to consolidate other debts into a single loan. This creates a longer payment term, but simplifies those bills into one payment. Another refinancing option reduces your monthly payment amount. This also extends the payment term, but provides short-term relief on the monthly expenses, and frees up cash. You can also use refinancing to cash out a portion of your home's equity. As a home increases in value, it becomes a source for extra income. Cash-out mortgage refinance transactions may also be tax deductible.

Under the right scenarios, refinancing can be a very smart move.

Reasons to Refinance Your Mortgage

When considering whether to refinance your mortgage, it's crucial to have a clear picture of your financial goals, as this vision can guide you toward choosing the most appropriate loan. Refinancing is a great idea when current rates are lower than rate of your current mortgage. But remember: refinancing doesn't eliminate debt; it restructures it with a lower interest rate and different loan terms than the current mortgage. The reduced rate brings a lower monthly payment (though the principal is unchanged), freeing up cash for the homeowner. If you're weighing your refinancing options, remember the following:

Lower Your Monthly Mortgage Payment

Reducing interest charges is the benefit most homeowners look for with refinancing, though others may want to extend their loan from 15 to 30 years, also reducing the monthly payment. Even a small interest drop (one half to three quarters of a percentage point) can lower your monthly payment.

If You're Refinancing from Fixed to Adjustable Rate

If you're signed to a 30-year fixed rate, ask yourself, "How long do I plan on staying in this home?" If the answer is anything other than "as long as possible," or "forever," it doesn't make financial sense to pay a higher, 30-year interest rate on a home you won't keep for that long. The higher monthly payments are an unnecessary money drain. Research your refinancing options for an ARM (Adjustable Rate Mortgage), as the lower rate will produce a lower monthly mortgage payment.

If You're Refinancing From Adjustable to Fixed Rate

Consider how the mortgage rates are trending. Are they going up, or dropping? With an adjustable rate mortgage, it may rise to a rate that's higher than a fixed-rate mortgage. In that scenario, it's wise to consider refinancing to a fixed-rate loan. But again, consider how long you plan on staying in your home. If you're staying put longer than seven years, it's a smart move to refinance to a fixed-rate. If you plan on moving a few years down the road, it may be unwise to refinance out of your ARM.

Eliminate or Reduce Credit Card Debt with your Home Equity - Cash Out Refinance

High interest credit card debt is one of the most common sources of many consumer debt woes. Consumers across the nation have taken a double whammy in recent years as the economic recession has coincided with credit card companies raising their interest rates. Feeling overwhelmed by debt is a stressful feeling, one that is, unfortunately, all too familiar to many homeowners. Refinancing to consolidate debt may offer homeowners some financial relief.

Credit card debt and a mortgage have one very significant difference: The interest you pay on a credit card is not tax-deductible, meaning you pay a higher rate than you do on your mortgage. Because of this, credit card debt is seen as "bad debt," while a mortgage is termed as "good debt." Refinancing your mortgage to get cash back from your home equity and pay off credit cards could result in a slightly higher mortgage rate; but that's still likely to fall much lower than the 20% (or more) charged by many credit card companies. Using your home equity to pay off your high-interest credit card debt can save you money in the long run. You can also refinance while consolidating high interest credit card debt at the same time. Usually the borrower saves a few hundred dollars a month.

One of our friendly mortgage experts can help you better understand all your refinance options. Request a FREE, No Obligation Quote to get started.