Loans (US)

Mortgage Refinancing: is it worth it?

Mortgage Refinancing: is it worth it? Learn how it works and how you can get an offer from a top lender through the Credible Personal Loan Marketplace.

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by Aline Augusto

Published on 10/09/2022

Mortgage Refinancing: find your best loan option at Credible

Learn everything about mortgage refinancing. Source: Adobe Stock.
Learn everything about mortgage refinancing. Source: Adobe Stock.

Probably, you are aware of the increase in mortgage rates. Even so, mortgage refinancing might be worth considering depending on your situation and the offer you get.

Also, by accessing the right tools, you may find a top lender with affordable conditions, flexible terms, and reasonable rates.

In addition, people looking for mortgage refinancing may be able to eliminate insurance and consolidate debt with high-interest rates on it.

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However, before going after a mortgage refinancing offer for you, keep reading to learn how it works and how Credible could help you out!

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What is Mortgage Refinancing?

See if you should refinance your mortgage. Source: Adobe Stock.
See if you should refinance your mortgage. Source: Adobe Stock.

Usually, people go after refinancing their mortgage to pull out cash or save on monthly payments.

In summary, refinancing your mortgage means replacing your current mortgage with a new loan, terms, and conditions.

The main goal is to lower the interest rates.

Therefore, you can save on interest, save on monthly payments, pay off your mortgage faster, and pull out cash.

A Mortgage Refinance works like a new loan. Let’s suppose you hold a mortgage of a 35-year term and have repaid it for five years.

Refinancing it for a new 35-year loan means you don’t have 30 years left anymore. You will have a 35-year term on your new loan.

On the other hand, if you refinance your mortgage for a 30-year new loan, you will save five years and will pay it off earlier instead.

Sometimes, refinancing your mortgage is good. But, other times, can be dangerous. It depends on the options you get and your situation.

In addition, you must be careful choosing the best mortgage refinancing option for you because there are multiple lenders offering that as well as there are many types available on the market.

Before applying for a mortgage refinance, check out the advantages and disadvantages of doing it.

Advantages

  • You can lower your current rates by refinancing your current mortgage with an option called rate-and-term refinance. Usually, this option features shorter terms in order to lower the rates. If you have the budget, it might be a good deal;
  • You will be able to eliminate mortgage insurance by refinancing your current mortgage. This mostly happens with Federal Housing Administration (FHA) loans;
  • You may consolidate your high-interest debt;
  • You could save on monthly payments, as well as decrease your loan term.

Disadvantages

  • Your credit score will be affected temporally; 
  • You will need to pay the costs of closing your current mortgage;
  • In case you pull out cash, the risks of spending it are high if you don’t have financial control;
  • You may apply for a more expensive mortgage refinance option with worst conditions;
  • You may move into a new loan with longer terms.

How does Credible Mortgage Refinance work?

You can benefit from mortgage refinancing. Source: Adobe Stock.
You can benefit from mortgage refinancing. Source: Adobe Stock.

In case you are looking for a mortgage refinance, it is worth considering a marketplace of top lenders to help you find the best for you.

As mentioned above, there are plenty of advantages and disadvantages to refinancing a mortgage. Therefore, it is better to ensure you are lowering the risks of sinking into debt.

So, let me show you how Credible works.

This company is an online marketplace of top lenders that includes financial institutions like UnionHome Mortgage, Allied Mortgage Group, NASB, and Nations Lending.

It offers a complete range of products and services, including a mortgage refinance with fixed or adjustable rates.

All you must do is fill out the 100% free application through its platform, receive offers within a few minutes, and find the best that fits your needs and goals.

Also, Credible uses smart technology to automate the process, making it faster and easier.

Furthermore, you can prequalify and check out your rates without affecting your credit score.

Basically, Credible gathers mortgage refinance options so you can compare all and save on interest, monthly payments, or cash out to consolidate high-interest debt.

The company not only offers a marketplace of loans but also offers a dedicated support team and considers FHA loans and jumbo loans. 

In addition, you can make use of valuable tools on the platform, including a calculator that helps you estimate your costs and savings. 

Moreover, in case you are wondering, the platform is safe to use and includes 256-bit data encryption.         

How to Apply For a Mortage Refinancing through Credible

Credible offers an amazing and easy-to-use platform for you to find the best loan offer. You can compare the rates and terms by prequalifying for free through this marketplace.

Also, it provides a refinance calculator so you can check if it would be suitable to get a mortgage to refinance for you, no matter the purpose.

Prequalifying won’t affect your credit score, and it takes only three minutes to find out your rates and options for refinancing a mortgage.

By doing it, you can save time and effort and compare top lenders to save on monthly payments & interest or cash out to pay off high-interest debt.

If you are interested in learning more about the process, go check out the next post that explains how it works and how you can apply for free within minutes.

Credible Personal Loan Marketplace

How to apply for the Credible Personal Loan

Check out how the Credible Personal Loan Marketplace application works so you can find the best loan for you to cover your needs and achieve your goals.

About the author

Aline Augusto

My name is Aline Mesquita; I'm a writer here on the blog, where I write about finance in general and other subjects. I have been working with content creation for ten years. Also, I'm post-graduated in Project Management, with expertise in SEO practices. Currently, I am studying finance, market trends, and cryptocurrencies.

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Aline Barbosa

Senior Editor

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