South Carolina Home Refinance

When it comes to analyzing our finances, many homeowners don’t quite realize the number of options available to them. For example, a home refinance is something that often goes under the radar. Fortunately, this is something with which we can help at BrickWood Mortgage. If you need any advice on refinancing, be sure to contact our experts today.

What is Home Refinancing?

It’s easy to get caught up in different terminology and confusing definitions with home refinancing. So, a simple way of looking at it is that you’re trading in your mortgage for a different one. As the market becomes more flexible, this is more and more common these days. Rather than sticking with the same mortgage for 25 years, for example, you can trade it in for a newer one along the way. Typically, new rates and principals are calculated at the point the homeowner takes this step.

Here are the basic steps involved in a home refinance:

You qualify for a new mortgage
Your new mortgage pays off the old mortgage
You resume payments at the new rates and on the new principal

If this sounds like something you can use, contact BrickWood Mortgage for more information. As a mortgage broker, we can talk you through home refinance rates and other details you need to know before making a decision.

Benefits of a Home Refinance

Refinancing is an attractive proposition, but this doesn’t mean that it suits everybody. Again, this is another reason to work with professionals. Here are some of the potential benefits of refinancing:

Faster Repayment – In many cases, homeowners use refinancing to pay off their mortgage sooner. For example, they refinance from a 30-year loan to a 15-year loan. If your financial situation has changed since you first applied for the mortgage, you could benefit from adjusting the terms of the loan and paying the debt off faster.

Free Up Cash – Alternatively, you may be able to secure a lower interest rate. In turn, this will reduce the amount you pay each month and free up some cash for other areas of your life.

Secure a Fixed Rate – Some people get tired of paying different amounts for their mortgage as the rates change, and this is where a refinance allows them to secure a fixed-rate loan instead. As you pay the same amount each month, you can plan finances with more security and certainty.

Get Cash Out – In addition to freeing up cash, some use refinancing as an opportunity to get cash out for home improvements, to pay off debt, or whatever else they may want to spend the money on.

Things to Consider

As mentioned in the previous section, home refinancing doesn’t suit everybody. Therefore, it’s important to keep the following considerations in mind.

Early Repayment Penalties – Depending on the situation, your current loan could have an early repayment penalty built into the terms. If this is the case, paying off your existing mortgage now could lead to this penalty. When working with BrickWood Mortgage, we’ll look into whether this will be the case with your mortgage to ensure that refinancing truly benefits your overall situation. Generally, a home refinance requires a certain level of equity in the property, so you may be sufficiently into your mortgage to avoid a penalty.

Unfavorable Rates – We said that our experts will help with home refinance rates, and this is because they don’t always work out for everybody as mortgage rates change daily. If the rates aren’t favorable today or you refinance at the wrong time, you could end up paying more over the course of the mortgage. While working with a broker is best (because we can compare rates between national lenders and find the best mortgage), be sure to do these calculations if you choose to go it alone.

How to Refinance Your Home

Before anything else, ask yourself why you want to refinance your home. Do you want to pay less for mortgage repayments? Would you like more cash for holidays and home improvements? Do you want to shorten the loan term? Once at this stage, contact BrickWood Mortgage and tell us this information. Thereafter, we can assess your mortgage documentation, compare loan options, and offer the best solutions for your position.

Ultimately, whether refinancing is right for you will depend on your current financial position, the state of your mortgage and how long it has been in place, and the market and current rates. Brokers can compare hundreds of loan options, so you’re in good hands with BrickWood Mortgage.

If a home refinance is right for you, we’ll help you through the required steps toward a happier future. Why not contact our amazing team today at (843) 314-4101?