Equity Mortgages Refinance

How Much Equity Do I Need to Refinance?

As a loan officer, I may not always be the life of the party full of witty stories about my workday. However, friends and neighbors do come to me regularly with questions about buying homes, mortgages and, more recently, refinancing. It seems with the immediate mortgage crisis beginning to subside that homeowners are starting to look at new options. With all of these questions, I’ve come to realize that there is some confusion in place about what refinancing is, what it can accomplish and who may be a good candidate. I’d like to share a bit more about the process and help decide if it could be a possibility for you.

What is Mortgage Refinancing Anyway?

Refinancing is a method of restructuring your mortgage. Typically, you would refinance to take advantage of lower interest rates or better mortgage terms. Refinancing can potentially reduce your monthly payment, lower the overall amount of interest you pay or both. However, refinancing to a lower interest rate does not always make sense, so it is important to discuss all fees and concerns with your loan officer before committing.

How Much Equity Do I Need to Refinance?

This is the refinancing question I’m asked more than any other. Unfortunately, it’s not one I can easily answer. A lot of this depends on the price of your home, whether it has increased or decreased in value and the overall market in your neighborhood, plus your credit, of course. A good loan officer will discuss your reasons for wanting to refinance and help you see whether refinancing would be a good decision or not.

When it comes down to it, every refinance situation is different, so you need to talk to someone who knows you and knows your situation. If there’s not a loan officer hanging out looking for someone to chat with at the next cocktail party you attend, why not reach out to us at Liberty Financial?