Refinance

Refinancing is the replacement of an existing debt obligation with a new debt obligation that has different terms. The most common consumer refinancing is for a home mortgage. A person may refinance to reduce interest rates, to extend the repayment time, to pay off other debt, to reduce one's monthly payment obligations, to reduce or alter risk, or to raise cash.

In most cases, refinancing is used to improve the cash flow of an individual. Refinancing can alter the monthly payments owed on the loan either by changing the loan's interest rate, or by changing the maturity of the loan. If you can attain more favorable lending conditions, it may reduce your overall borrowing costs.

By refinancing an adjustable-rate loan to a fixed-rate loan, it can help to eliminate your interest rate risk. Instead of having your rate go up and down, you can lock in a rate that you know will be steady. Lenders typically charge a risk premium for fixed rate loans.

Even with a lower payment, some refinanced loans may result in larger total interest costs over the life of the loan, or expose the borrower to greater risks than the existing loan. You should only consider refinancing if the there is a potential for substantial savings, or if there is a need to extend the loan due to weak cash flow or other non-recurring commitments.

Cash Out Refinance

A cash out refinance allows you to refinance your loan amount to an amount larger than your current loan, and put the difference to good use. It may help to lower your monthly payment or even help to shorten your mortgage periods. It can be used for home improvement, or credit card and other debt consolidation if your home equity qualifies.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.