Mortgage Refinancing: Save Money Long Term

If you’re interested in saving money on your monthly mortgage payments or could benefit from a cash influx in exchange for some of your equity, consider mortgage refinancing. At Bell Financial Group, we focus on exceeding our clients’ expectations with personalized refinancing solutions. Both cash-out and rate-and-term refinancing have unique benefits to explore. If you own a home in Boise, Pocatello, Blackfoot, Idaho Falls, Rigby, Rexburg, or nearby Idaho, exploring your refinancing options is easy. Contact one of our mortgage professionals today to get a quote or ask questions.

Cash-Out Refinancing

Would your family benefit from a cash infusion to pay off existing bills or high-interest credit cards, to make home improvements or to take a dream vacation? Cash-out refinancing is one solution to consider. With this refinancing option, we replace your existing home loan with a mortgage with a higher value and you receive a cash payment for the difference between your old and new mortgage. Your refinance is a new mortgage with either a longer term or slightly higher monthly payments.

Cash-out refinancing is popular among and available to clients who have a substantial amount of home equity, which secures your new loan. Your cash-out refinance does not require a new down payment or other substantial up-front costs, but instead puts money in your pocket. To qualify for this type of refinance, you should be in good financial standing, a low debt-to-income ratio (DTI) and a good credit score. Cash-out refinancing does add to the value of your mortgage, which means you’ll pay more over time, so it is important to enter into this type of contract wisely and with a purposeful use of your cash.

Rate-and-Term Refinancing

Rate-and-term refinancing is a very popular mortgage solution for existing homeowners who want to save money over time. Each of our rate-and-term refinance clients has unique goals for refinancing. You could save money over time by obtaining a better interest rate, switch from an adjustable rate to a fixed rate, or change the term length of your mortgage, such as from 15 to 30 years.

Unlike cash-out refinance, you will not receive any cash up front for refinancing this way. Many of our clients who choose rate-and-term refinancing are looking for a lower monthly payment for more financial stability. Even if you have a decent interest rate now, you could still save big over time with even a minimal reduction in your interest rate or change to your term.

Some of our clients who explore rate-and-term refinancing previously secured a mortgage while they were in a less desirable financial state. If you had fair or poor credit, a high DTI or other mark on your finances when you first signed your mortgage, you are not stuck with your high rates forever. If your credit or financial status has improved in the years since, you could secure a better monthly payment now.

We Love to Help You Save

When you’re ready to look at cash-out or rate-and-term mortgage refinancing, contact Bell Financial Group. Our qualified home financing professionals have the combination of local expertise and lending power that make us a valuable partner. We serve clients in Boise, Pocatello, Blackfoot, Idaho Falls, Rigby, and Rexburg. When you’re ready to learn more and get a free refinancing quote, contact Bell Financial Group.