When refinancing your mortgage, you can be confident Appraisal Partners is giving you the complete information you need to complete the process.
With a cash-out refinance, you can replace your current mortgage with a new home loan of more than you owe on your house. The new home loan pays you the difference of your mortgage value and your home value in cash.
Cash-out’s can provide some benefits such as a possible lower interest rate, debt consolidation, and funds for home renovations. However, a cash-out refinance will require you to have an appraisal done to find the current value of your property and determine your home’s equity.
Private Mortgage Insurance (PMI) is given when the amount being loaned is more than 80% of the value of the home. This shows up as an additional payment mixed in with the initial monthly payment. If you feel that you have built up enough equity to remove PMI from your account, then you should have your home re-appraised to confirm your equity is high enough. This could result in extra savings each month that could be put toward your home or other investments.
Home Equity Line of Credit
With a Home Equity Line of Credit (HELOC), your first 10-20 years is what is called the draw period. During this time, monthly payments are applied only to the interest. After those 10-20 years, the amortization period begins and if your amount owed is still high, then your monthly payments will go up significantly.
To avoid these increased payments and refinance your HELOC, you have three options.
- Refinance your HELOC with a new home equity line of credit.
- Pay off the HELOC with a home equity loan.
- Refinance the HELOC and the first mortgage into a new primary mortgage.
With each option, there is the need for an appraisal to determine the equity of your home.
If you are looking to make improvements to your home, a renovation loan can help you get the job done. A renovation loan provides you with the cash for remodeling and improvements around the house, into a new mortgage. The loan amount is based on both the estimation of your desired renovations and the current appraised value of the home.
Appraisal Partners can quickly provide you with a local, reliable appraiser from our team and get you one step closer to refinancing your mortgage.