What is Mortgage Refinancing?

Mortgage refinancing is an option available to mortgage holders that allows them to get new mortgage rates and terms while securing additional capital. This overhaul happens by paying off their existing mortgage with a new mortgage, which the holder then pays back over time.

Mortgage refinancing is only possible when you have existing equity in your home. For those with enough home equity, refinancing a mortgage can lead to great savings over the time.

When you refinance mortgages, you get lower interest rates, so if you keep the same payment schedule as with your original mortgage, a larger portion of each payment can be applied to the principal.

In this way, you could potentially cut years off your repayment plan and save money in the process.

Why Should You Use Credit Arch for Your Home Equity Loan?

The reason so many people trust CreditArch to connect them with the perfect lender is our commitment to simplicity, security and transparency, all in the service of providing great results for our clients.

It’s
Easy

In one easy-to-use form, we’ll connect you with the perfect lender for your financial situation after answering just a few questions.

It’s
Quick

Fill out our one form, and voila! You’ll be connected right away to a choice from our portfolio of lenders. Pick your favorite and go!

It’s
Secure

All of the information you enter is private, and we’ll make sure to keep it that way. Applying through CreditArch is 100% safe and secure.

What Sort Of Information Is Required?

At CreditArch, we don’t need too much of your data to get started – just the basics. While every loan type is different, you’ll likely need:

Proof
of Age

Only those 18 and up can apply

Credit
Score

The better the score, the lower the rates

Current Debt

Describing your current financial commitments will help

Income Level

The more stable your income the better

Reasons to Refinance your Mortgage

Debt Consolidation

Many people refinance their mortgages to help consolidate their debts. By taking out a new mortgage that can more than pay for the original, the remaining cash can be used to pay off high-interest debt from credit cards.

With a lower interest rate than a line of credit, using your mortgage to take care of outstanding credit card debt will save you money. Also, because all your debt will now be in one place, it will be easier to manage than multiple payments to various creditors.

Lower Interest Rates

Because you enter a new mortgage when you refinance, you can take advantage of changes in the market. For example, if interest rates have fallen since you took out a fixed-rate mortgage years ago, a new mortgage will come with a substantially lower rate.

This lower rate will help you pay off the principal faster, while building equity and ultimately reducing the amount of time it will take to clear the mortgage.

Advantages of a Refinanced Mortgage

If you choose to refinance mortgage assets, the primary advantages are:

  • Lower monthly payments – Mortgage refinance will result in lower interest rates, which will lower your minimum payment.
  • Increased flexibility – Lower interest rates and lower minimum monthly payments could actually let you decrease the length of your mortgage. If you choose to keep making payments similar to those made on your original mortgage on your refinanced mortgage, you will be able to pay down the principal more quickly.
  • Cash at your disposal – Because refinancing your mortgage covers the total amount of the original loan, and not the amount you have left to pay, the difference could mean a lot of readily available funds at your disposal.

As with any financial product, engaging in the refinance of mortgage payments is not a risk-free endeavor. The main potential drawbacks are:

  • Extending the loan period – If you are not careful about managing loan terms and payments then you risk increasing the time it will take to pay off.
  • Fees – Refinancing incurs fees, which may be difficult to recover, even with lowered interest rates.

Get Started With CreditArch

Not sure where to start? Simply contact us and we can help you understand your options, or walk you through our simple process step by step.

Need immediate assistance? Contact Us

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