Refinancing

Refinancing

Refinancing refers to the complete process of replacing the terms of an existing credit agreement. A refinance of a credit obligation is done for the purpose of seeking favorable changes to the interest rates, payment schedules, and other terms mentioned in the contract. When the refinance gets approved successfully, the existing contract of the borrower gets replaced by a fresh contract.

Types Of Refinancing And How WGB Helps You With Each

– The Rate and Term Refinancing

The rate and term refinance as a process changes either or both the rate of interest of an existing mortgage, minus any advancing new money. Basically, it involves the replacement of a pre-existing mortgage with a new home loan. This process is also called a no cash-out refinance. A drop in market interest rates fundamentally drives the refinance rate and term. The most significant advantage of a rate & term refinance is the security of a lower interest rate and a more desirable term on the mortgage. Here, the principal balance remains precisely the same. This way, it can lower your monthly payments or even set a fresh schedule to pay off the mortgage speedily. Whittaker Gregory Burton makes sure you make the most out of these benefits by taking out a rate and term refinance. Finding cheaper interest rates for you is what the platform is known for. Whittaker Gregory Burton walks with you on every baby step to land you in the best refinance rate and term possible. From applications to the deal’s closure, Whittaker Gregory Burton makes sure you are ready for every process. Whittaker Gregory Burton knows when you should be opting to refinance and thus guides you to the right path.

– The Cash-out Refinancing

A cash-out refinance refers to a type of mortgage refinancing option in which the existing loan amount is lower than the new mortgage amount. This is to turn home equity into cash.

Basically, the new mortgage is larger than your previous mortgage balance, and you get the difference amount in cash. There are plenty of benefits of a cash-out refinance that you must consider. First things first, you get lower interest rates here. In comparison to a home equity line of credit, you get a lower interest rate in a cash-out-refinance. Next, you can make use of the money from cash-out refinance to cover high-interest credit cards. This, in turn, also builds your credit score by decreasing your credit utilization ratio. Use the cash for College, Pay off Student Loans, Home Improvements or a Second Home.

Whittaker Gregory Burton makes sure you make the most of these benefits and makes your path to these pros easier. Opting for a cash-out refinancing can be overwhelming, and thus Whittaker Gregory Burton sets everything straight for you. From determining your eligibility to closing your deal, Whittaker Gregory Burton makes sure every step is hassle-free, convenient, and transparent. Minimizing complications and breaking them down into simple, doable steps is Whitaker Gregory Burton is famous for.

– Cash-in Refinancing

Cash-in refinancing lets the borrower pay down a segment of the loan for a lower (LTV ratio). The loan-to-value is calculated by taking the mortgage divided by the property’s value.

– Consolidation Refinancing

Consolidation refinancing is made to use when an investor takes out a single loan at a rate lower than their present average interest rates across different credit products. Consolidation refinancing demands the consumer to apply for a fresh loan at a lower rate and then pay the existing debt with the fresh loan, leaving their total outstanding principal with lower interest rate payments.