Refinancing

Refinance mortgage loan programs allow homeowners to replace their current mortgage with a new one that offers better terms, such as a lower interest rate, reduced monthly payments, or a shorter loan term.

Pros:

1:  Lower monthly payments: Refinancing can lower your monthly payments by securing a lower interest rate or extending the loan term.
2:  Shorter loan term: Refinancing can also allow you to pay off your mortgage sooner by securing a shorter loan term.
3:  Improved cash flow: Refinancing can free up cash that can be used to pay off other debts or invest in other opportunities.
4:  Access to equity: Refinancing can allow you to access the equity in your home for large expenses like home improvements, education, or medical bills.
5:  Consolidation of debt: Refinancing can also allow you to consolidate multiple debts into one payment, which may result in a lower interest rate and lower overall monthly payments.

Cons:

1:  Closing costs: Refinancing often comes with closing costs, which can add up to thousands of dollars.
2:  Prepayment penalties: Your current mortgage may have a prepayment penalty if you pay it off early, which could negate any potential savings from refinancing.
3:  Resetting the clock: If you refinance and extend your loan term, you may end up paying more in interest over the life of the loan.
4:  Credit requirements: Refinancing may require a higher credit score or other qualifications that you may not meet.
5:  Appraisal requirements: Refinancing may require a new appraisal, which could result in a lower appraisal value and affect your loan options.

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Fairway Mortgage, LLC
NMLS #2767473

Office: (541) 654-8285
Cell: (541) 513-9000
Email: contact@fairwaymortgagellc.com
350 West 5th Avenue
Eugene, OR 97401

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