There is no denying that, generally, refinancing a mortgage can help you save money, pay off the mortgage faster and build equity. With mortgage rates this low, even folks who’ve relatively new mortgages can benefit from refinancing.
In this blog post, we would be enlightening you with the present state of refinance mortgage market, its various programs and benefits and the reasons we feel refinancing your mortgage NOW is a smart option.
Refinance Mortgage Market Prevalent State
With mortgage rates nearing rock bottom, we feel it is an excellent time for you to refinance your mortgages. On April 21, 2021, CNBC reported a significant increase in demand for mortgage applications – 8.6 percent – according to the latest survey by the MBA (Mortgage Bankers Association.)
The leading reason behind this increase was the lowest mortgage rates in the past two months. The average mortgage rate on a thirty years mortgage plunged to 3.20 percent from 3.27 percent. The report also revealed that homebuyers and owners swiftly reacted to this decrease and moved towards potential savings. This resulted in a 10 percent increase in refinance mortgage applications for the week. Consequently, the refinance shares of mortgage activity soared to 60 percent of total applications from 59.2 percent the previous week.
Joel Kan, Mortgage Bankers Association’s (MBA) associate V.P. of Economic and Industry Forecasting, anticipates the homebuying market to stay strong, with the supportive demographics and recovering job market powering housing demand in the subsequent months.
You must understand that mortgage rates change daily and can significantly vary based on your individual situation. With E-Finance Mortgage’s quick form you can now receive accurate and FREE rate quotes from a network of nationwide trusted lenders.
Benefits of Refinance Mortgage
Lower Monthly Payments
With lower interest rates, you can greatly benefit from the lower monthly payment, especially if the refinanced mortgage has the same payment date as your last home mortgage. Additionally, you can further reduce monthly mortgage payments by extending the payment date past what it presently is. This way, you’d be so paying less in principle every month.
Eliminate Mortgage Insurance
If you have an LPMI (lender-paid mortgage insurance), you get the option to refinance once you reach twenty percent equity to remove the premium that is constructed into your interest rate. Additionally, the same condition can be applied to certain FHA loans that mandate mortgage insurance for the loan’s life.
If you have an adjustable-rate mortgage (ARM) presently, you may refinance your mortgage to a fixed-rate credit to fix your rate for the remaining portion of the mortgage. This way, you won’t have to stress about monthly payments growing in case rates should increase.
Pay Off Mortgage Faster
Several borrowers begin their journey with a 30-year loan and, after a few years, refinance to fixed 15yr mortgage rates. This can help them save tons of money in interest and pay off the mortgage sooner. Moreover, you should be aware that mortgage rates on 15-year loans are considerably lower than 30-year mortgages. Meaning, you can shorten your term without instigating a significant increase in monthly mortgage payment.
See what a new rate can do to your mortgage payment by one simple click.
Top Refinance Programs 2021
FHA Streamline Program
This FHA-to-FHA refinancing program offers homeowners an easy and quick way to adjust their prevalent FHA loans term, rate or both, without tons of tedious paperwork. The best thing about FHA Streamline is that, in many cases, it does not even require an appraisal, so you may not need a credit check.
The VA Streamline Refinance (Interest Rate Reduction Refinance Loan – IRRRL) is a refinance program sponsored by the U.S. Department of Veterans Affairs initiated in 2018. It is regarded as the best option for homeowners already having a V.A. Loan and looking to refinance with a lower interest rate or lower their mortgage payment rate. V.A. is relatively easy and quick compared to other present programs.
To learn more about refinance programs, please head to our free Refinance Advisor!
How Can E-Finance Mortgage LLC Help?
Refinance mortgage or cash-out refinancing can be extremely lucrative if you wish to improve your financial condition or are seeking to upgrade the home. The best thing is that today’s refinance market has some of the optimal rates in recent times. Thus, you can take a look at E-Finance Mortgage LLC’s quick quote calculator to better assess your situation and check how you stand to benefit from the current market conditions.
Additionally, we do business in 10 U.S. states, and as a state non-depository lender, we have the flexibility that typical banks don’t have. Hence, if you are someone that needs a mortgage or intend to do something with your current one, feel free to contact us at Alex@e-financemortgage.com or give us a call at 844-433-4626 today!
For free, instant quotes, do not forget to check out our Quick Quote Calculator and other free services.