I want to replace my current mortgage with a new loan that has more favorable terms.
With a conventional refinance, you can replace your existing mortgage with a new loan that offers better terms, such as a lower interest rate or monthly payment. You may also choose to shorten or extend the loan term to meet your financial goals. Additionally, a conventional refinance may allow you to access your home's equity for other expenses, such as home renovations or debt consolidation.
What are the biggest benefits of a conventional refinance?
- Lower interest rates: One of the primary benefits of a conventional refinance is the potential to obtain a lower interest rate. This can lead to significant savings over the life of your loan.
- Lower monthly payments: With a lower rate, your monthly mortgage payments may also decrease; this can free up more cash in your budget for other expenses or savings.
- Flexible terms: With a conventional refinance, you have the flexibility to adjust your loan term to better suit your financial goals. You can choose to shorten the term to pay off your loan faster or lengthen the term to lower your monthly payment.
- Access to equity: A conventional refinance may also allow you to tap into your home's equity for other expenses, such as home improvements, debt consolidation, or education costs.
- No mortgage insurance: If you have built up at least 20% equity in your home, you may be able to remove or reduce the cost of private mortgage insurance (PMI) with a conventional refinance. This can save you thousands of dollars over the life of your loan.