What is Refinancing

Refinancing replaces an existing mortgage or debt obligation with a new loan or debt obligation with different terms and conditions. 

Benefits of Refinancing a Home

Refinancing your home helps you obtain a new mortgage to replace the existing mortgage. 

Refinancing a mortgage may allow you to:

• Lower your interest rate
• Lower your monthly mortgage payment
• Consolidate debt
• Change the loan terms to match your changing financial needs
• Take cash-out of the equity of your home
• Cancel mortgage insurance premiums

Your mortgage advisor at GuardHill will help you obtain the most favorable mortgage financing terms with the lowest possible interest rate. 

Types of Refinancing

There are two types of mortgage refinances: cash-out and rate & term. 

-Cash-Out Refinance

A cash-out refinance is when you leverage the equity built up in your home to replace your existing mortgage with a higher loan amount. The difference between the original mortgage and the new one with a higher loan amount is the cash available to you. People often use the money to pay for home improvements, consolidate debt, or invest in more real estate. 

-Rate and Term Refinance

A rate and term refinance is when you replace the existing mortgage with a new mortgage with a different interest rate or term (or both). The main reason people do a rate and term refinance is to get a lower interest rate. You may even change from an adjustable-rate mortgage to a fixed-rate loan (or vice versa). 

If you are unsure if refinancing is right for you, read more about the most common questions about refinancing. At GuardHill, we will evaluate your current mortgage and financial situation to determine if a mortgage refinance is beneficial for you.