More about Conventional Refinancing

Ransom Kelly at Assurance Financial has helped many families in Birmingham, Alabama. We welcome you to reach out and discuss whether you want to refinance your mortgage to a conventional loan. There are plenty of tools to help you weigh the options available. Today we are here to share about conventional refinance options. When you evaluate your current situation, as well as the market, you will find you may gain several benefits from restructuring your mortgage.

Whether you have an FHA Loan or another type of program, you can look into refinancing to a conventional, private mortgage. If you have good credit or great value in the home, you may be able to secure a great rate from a conventional mortgage lender. Prepare to handle all the closing costs and paperwork involved. Ensure everything makes sense and that you are truly getting better program terms or rates.

Reasons you May Want to Refinance to a Conventional Mortgage

One of the key reasons people refinance to a conventional, private mortgage, is that they are in a program that requires them to have mortgage insurance. With the refinance, this requirement may be dropped. The market may also be offering some amazing loan rates, and you want to take advantage of the offers available. Some people also earn certain tax write-off benefits when they refinance. Others may be looking to stretch or change their loan terms. Consider how much savings you will get from your decision before making the move.

Others want to switch to a new loan program in order to create equity and pay off the home more quickly, perhaps you wish to purchase a second home or have bigger financial goals. The flexibility in the conventional mortgage may appeal to you.

Is it the Right Time for a Conventional Refinance?

First, requirements in your current mortgage program may have terms that inhibit your ability to complete a conventional refinance. FHA Loan programs may have lifetime agreement requirements. You should also consider if rates in the mortgage market are at their best. In some cases, waiting makes more sense.  Are you juggling multiple mortgages that can be streamlined into one? Are there government programs being created that support your decision? These are critical questions to answer in your fact-finding.

A certain amount of equity in the home is required to refinance, usually 20%. This is also the level at which people can apply to remove mortgage insurance. Look at your payment now and after the switch. Is it truly lower and will it stay lower over time?

Ransom Kelly at Assurance Financial works over the long-term with customers to help answer many questions as they consider refinancing.  Contact our staff in Birmingham, Alabama to learn more about if this is the best time to complete a conventional refinance.