Home Loan Refinance Center
Castille Mortgage Lafayette, Louisiana
Home Loan Refinance Center
Refinancing your home mortgage can be a big decision. Your finances and needs change over time, so why shouldn’t your mortgage?
It might be the right time for you to refinance into a lower rate mortgage. It’s likely that the direction and focus of your life isn’t exactly what it was when you first closed on your home.
If that is the case, then perhaps the terms of your mortgage need to be updated as well. Refinancing can help. The Lafayette, Louisiana mortgage broker at Castille Mortgage can simplify the refinancing process and improve your mortgage.
refinance your mortgage for your current needs
Is It Time To Refinance Your Home Loan?
Consider the following questions to see if refinancing makes sense to you and your unique situation.
- Has the time come to save more money each month?
- Are you tired of your adjustable-rate mortgage that never stops adjusting?
- Are mortgage rates currently lower than what your rate is?
- Can you pull out cash for home improvement or personal use?
- Could you shorten your current term so you could pay off your mortgage faster?
- Is Private Mortgage Insurance (PMI) an added expense that is getting you down?
Homeowners refinance for a number of reasons. You may want to consolidate first and second mortgages, get a lower interest rate, or lower your monthly payment. Perhaps you want to switch from an Adjustable to a Fixed-Rate Mortgage or stop paying PMI.
Depending on how much equity you have in your home, there’s the possibility you can refinance your home loan and drop your Private Mortgage Insurance.
REFINANCING AS A MEANS FOR HOME IMPROVEMENT
Maybe you are looking to cash out some of your equity for home renovations. Refinancing allows you to redefine your mortgage loan to better fit your current needs. Often over time, families grow, and the original home starts to fee smaller.
Refinancing your mortgage is a wise way to grow money for a home improvement project. Remodeling your home can increase its value, and this type of refinancing can pay for itself over the long term.
Refinancing your home mortgage is a simple way to solve many of your mortgage challenges. Getting a lower monthly rate and paying less over the life of your loan often makes sense.
refinance the right way with castille mortgage
There are a few ways to lower your monthly payment, including obtaining a lower interest rate or extending the term of your loan. This is typically the reason for refinancing a home mortgage.
Whether you are looking to switch from a variable rate to a fixed rate loan, or aim to pay less per month, refinancing your mortgage can help provide stability and more manageable payments.
However, with so many options, it’s important to refinance the right way. Castille Mortgage is dedicated to saving you money on your home loans – whether you are refinancing or a home buyer.
At Castille Mortgage, we’re ready to find the right refinancing solution for you. We will help you evaluate your mortgage needs, and as a Lafayette, Louisiana mortgage broker, we can work with our many funding sources to find a refinancing plan that will save you money.
Contact us today so you can make a sound decision for you and your family.
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CASTILLE MORTGAGE CAN SIMPLIFY THE REFINANCING PROCESS
common home refinancing questions
Refinancing is getting one loan to pay off another.
Typically, the closing cost of a refinance is between 1 percent and 2 percent of the loan amount, lender fees included. You may choose to pay points (see below) to lower your interest rate, or you could want to do a Low- or No-cost refinance. Contact Castille Mortgage if you have questions or want to learn more.
Points (or discount points) are a way of lowering your interest rate. By paying 1% of the total loan amount up-front, a borrower can lower his interest rate by about 1/8%.
The rate refers to what percentage of your loan you will pay in interest per month, whereas the annual percentage rate (APR) is an adjusted percentage that expresses the yearly cost and also includes certain charges and fees.
The interest rate of a Fixed-Rate Mortgage (FRM) will not change for the life of the loan. Alternatively, an Adjustable-Rate Mortgage (ARM) will be subject to periodical interest rate adjustments based on interest rates around the country.
It depends. When you refinance, you may be able to get lower interest rates, but there are additional costs. However, a loan modification typically means extending the term of the loan and increasing the interest rate but adding no other fees. Use our free mortgage calculator to compare what each may cost.
The 2 percent rule states that you should aim for a 2% lower interest rate to ensure that the savings generated by your new loan will offset the cost of refinancing, provided you’ve lived in your home for two years and plan to remain in the home for two more years.
While this rule is useful as a point of reference, it shouldn’t be followed strictly. If you think you will stay in your home for five or more years, for example even a 1% interest rate reduction will pay off for you. Additionally, with low- and no-cost refinancing options available, the cost of refinancing can be recovered much more quickly. Talk to Castille Mortgage to learn more.
PMI stands for Private Mortgage Insurance. Borrowers with less than a 20 percent down payment are required to carry this insurance as a means of protecting the lender against default.
That’s not always the case, as Castille Mortgage has access to lenders across the nation, and many are flexible about credit histories. When considering refinancing a loan, it’s important to remember that the better your credit score, usually the better interest rate you can get. If you don’t have perfect credit you can still qualify for a refinance loan, but you’ll want to make sure that you’re lowering the interest rate on your loan enough to make a refinance worthwhile.
Yes. The general rule is that you need to have 90% loan-to-value ratio before you can refinance. This means that your home is worth about 10% more than the loan that is current on the house. Additionally, your home will need to have increased in value since you purchased it.
Yes. Depending on the type of refinance loan you opt for you can take out cash to use for bills, home repairs or whatever you might need it for. While this is a great option, it’s worth carefully considering, and discuss these programs with Castille Mortgage if you are interested in this type of refinancing.
Yes. Now is the time to refinance because interest rates are so low.
Typically a home loan refinance takes between two and four weeks. Getting your home appraised is usually where most delays occur.
Disclaimer: Even though a lower interest rate can have a serious impact on monthly payments and potentially save you thousands of dollars per year, the results of refinancing may result in higher total finance charges over the life of the loan.