What Is Refinancing a Mortgage?So, what does refinancing a home mean? The definition of mortgage refinancing is to pay off your existing home loan with a new one that likely has more favorable terms.In many cases, this means getting a lower interest rate that can help reduce your monthly ...
This is a loan offered by a private reverse mortgage lender and not insured by the government. Some proprietary reverse mortgage options allow you to take out a loan at age 55, rather than age 62. Typically, you can receive a larger loan advance, too, especially if you have a higher-...
Refinancing a mortgage has a lot of advantages. Here’s how it works, the types of loans available, and the pros and cons to consider.
Besides selling the home, you can close out a reverse mortgage with a lump sum or series of cash payments, by refinancing it into a HELOC or other home equity product or by transferring ownership to the lender through a deed in lieu of foreclosure. Your heirs will typically have 30 days ...
Refinancing explained Refinancing is when a homeowner gets a new mortgage loan to replace their current loan. The new loan should help them save money or meet another financial goal. For example, most people refinance to lower their interest rates and reduce their mortgage payments, often saving...
A reverse mortgage is advisable for people who have retired, or are in need of additional cash flow to meet their living expenses, but have no means of generating income. In order to qualify for a reverse mortgage, certain criteria must be met. The minimum age of the property owner must ...
Why mortgage refinancing is still worth pursuing Rates have risen from these historic lows, and no one knows when (or if) they will ever return. However, it's important to note that refinancing a mortgage loan can still be a wise financial decision today. After all, while mortgage rates ar...
Hard prepayment penalty: This applies when you pay off the loan early for any reason, such as refinancing with another mortgage lender or selling your property before the mortgage is paid off. Hard penalties are therefore more restrictive than soft prepayment penalties. A penalty might apply only...
A second mortgage is another loan on a home that already has a first, or primary, mortgage. Also called "junior liens," second mortgages are a way to access the equity in your home as spendable funds without selling or refinancing. Home equity loans and home equity lines of credit are tw...
With a recast, the length of your loan doesn't change. No lengthy application process. Refinancing a home involves a lot of the same processes as your original mortgage application. With a mortgage recast, there's very little required so the process is much faster. The disadvantages of a ...