One of the biggest reasons homeowners refinance their mortgage is to obtain a lower interest rate and lower monthly payments. By refinancing, you can pay off your existing mortgage and replace it with a new one.
Refinancing typically occurs when mortgage interest rates drop significantly, but borrowers with recently improved credit scores (from paying off credit card debt, making mortgage payments on time, etc.) are often candidates for better interest rates as well. If you haven’t checked your credit score in a while, it’s a good time to call an Alera mortgage consultant or run your free credit report now.
Regardless of the reason for the refinance, your Alera mortgage consultant will need to know what your existing loan scenario entails, review your long-term goals, and provide a comprehensive analysis that compares and contrasts the various loan programs available.