Are you struggling and confused about anything that has to do with a refinance. At East West Mortgage our mortgage brokers can be your own personal guide. With 20 years of experience around our belt we know what you need and we can help decide which program is right for you. Our mortgage brokers are ready to assist you with any of your refinance needs.
Refinancing
The rule when refinancing is that you should only refinance if the rates are 2% or more low. By lower the rates you also lower the monthly payments of the mortgage. The money saved can be put to use as you please. Refinancing is basically purchasing a new loan to pay for your current home mortgage loan. The new loan can incorporate your other debts so it can be paid of faster. An interest only refinance loan is a special type of refinance.
What is an interest only refinance?
An interest only loan is a loan where you pay only interest in a set amount of time (usually five, 10, or even 15 years). Therefore your initial payments in those months are lower. As soon as those months are over you will have to start paying the principal, which results in an increase of monthly pay.
- Pros - lower initial pay -The ability to invest money saved before paying principle
- Cons - higher monthly payments during principle
It is not wise to use an interest only loan to buy a house you normally can not afford. Once you start paying principle you might not be able afford the monthly payments.
If you do decide to refinance please feel free to call us for further information, or apply with us through our online application process.
