Does It Make Sense To Refinance?

Deciding if it makes sense to refinance starts with this question: What are your financial goals? Whether you want to lower your monthly payment, get a lower interest rate, shorten your term or do a cash-out refinance, our refinance calculator can help you determine if refinancing can help you meet your goals.

How Can I Get An Estimate Of My Rate?

Our refinance calculator uses today’s current rates. Once you enter your numbers and pressing “Calculate,” you’ll see a list of recommended loans, terms and rates. If you like what you see, you can get started by contacting a Home Loan Expert or applying online with Hypotec.

How Can Refinancing Lower My Monthly Mortgage Payment?

To lower your monthly payment, look for a refinance option that helps you do one or more of the following:

• Lock in a lower interest rate - The higher your interest rate, the more you pay for your mortgage, both now and in the future. Refinancing to a loan with a lower rate means you could get a lower payment as long as you don’t shorten the length of your mortgage term.
• Stop paying for private mortgage insurance (PMI) - If you put less than 20% down on your original home loan, chances are you're paying for PMI. If your home has increased in value and/or you have enough equity, you can refinance to eliminate this costly monthly payment.
• Get a longer loan term - When you refinance to a longer-term loan, you're stretching the amount you owe over a longer period of time. While you might pay more in interest overall, your monthly payment will decrease.

What Are The Advantages Of Refinancing To A Shorter Loan Term?

You'll be able to own your house sooner than you would with your current mortgage, which may put you in a better financial situation down the road. In the meantime, you'll likely save quite a bit on interest, since loans with shorter repayment periods generally have lower interest rates.

How Can I Take Cash Out Of My Home?

If you have enough equity in your home, you may be able to refinance to take cash out. Taking cash out means refinancing your home with a larger loan amount. Your new loan pays off your existing loan, and you get to pocket the difference.

Many homeowners take cash out to pay off high-interest debt or fund home improvements. The cash you get from a cash-out refinance is tax free and yours to spend however you choose.