Curious about mortgage refinancing?
As you no doubt already know, the path to becoming a Utah homeowner isn’t always a simple one to navigate. And, the journey doesn’t come to an end the day you receive the keys to your dream home. From there, you still have many years of loan payments to make – and during that time, your financial situation could change.
In that case, mortgage refinancing might make sense. Here, the Intercap Lending team explains the ins and outs of refinance loans and reasons you might want to refinance your Utah home.
What is a Mortgage Refinance?
Refinancing is basically the process of replacing an existing mortgage loan with a brand new home loan. The new mortgage pays off the old one, and that account is closed. The homeowner is bound to the terms of the new loan until it has been fully repaid – or until they decide to refinance again.
The mortgage refinancing process is quite similar to the process for taking out an initial home loan, but for many Utah borrowers, it’s faster and easier.
Mortgage refinancing can take anywhere from a few days to over a month, and homeowners can stick with their current lender or shop around for a better deal. In the latter case, working with a Utah mortgage broker is the simplest way to find the most favorable refinance loan option.
When Does Mortgage Refinancing Make Sense?
A mortgage refinance may not be right for every Utah homeowner, but there are several reasons to consider refinancing your home. With a brand new loan, you might be able to:
- Lower your monthly mortgage payment, making it easier for you to keep up with the expense while covering all of your other necessities
- Reduce the interest rate on your home loan, which could translate to tens of thousands in savings between now and the end of your term
- Shorten the term of your home loan for the purpose of bring a quicker end to your obligation to make monthly mortgage payments
- Release a co-borrower, such as a parent or former spouse, taking over the home loan yourself instead of sharing the responsibility
- Eliminate private mortgage insurance by refinancing once you reach the point of having at least 20 percent equity in your Utah home
Also, if your Utah property is worth more than what you owe, a cash-out refinance allows you to pull equity out of your home. You can use the money to consolidate high-interest debt, thereby improving your bottom line in the long term, or you can put the cash toward whatever you like.
Are You Ready for Mortgage Refinancing?
If you think now might be the right time to refinance your home, reach out to the professional team at Intercap Lending. We have extensive experience helping Utah homeowners with the mortgage refinance process, and we can guide you in making an informed decision about refinancing.
To explore the refinance loan options available for homeowners in northern Utah, contact Intercap Lending for a free, no-obligation consultation to discuss the matter of mortgage refinancing today.