Do you own a home on which you have a mortgage? Have you been mindful of your credit, paying your bills on time and building your credit score over time, only to have your home mortgage interest rate remain the same? If so, it may be time for you to consider a refinance of your mortgage. Let’s look at some of the benefits of this move, as well as where to go to refinance mortgage loans in Knoxville.
What is a Refinance, Anyway?
For many people, the word “refinance” is one they’ve heard but never explored. Simply put, refinancing means to replace an existing loan with a new one, usually with a better rate of interest. For those with bad credit, this can be a risky move and may result in higher interest rates. However, for those who have solid credit ratings, or those whose credit has improved since the original loan, a refinance can replace a mortgage that has been weighing them down with lofty interest rates with one that is more manageable and beneficial.
Some people also choose to refinance their home in order to take out a lump sum of money in the form of a home equity loan. This allows homeowners to borrow against the value of their home to make large purchases, and in the case of unexpected and major expenses can be a life-saving manoeuvre.
How Can I Refinance My Mortgage?
The first step in refinancing is to talk to your bank. A loan advisor will be able to go over the details of your current mortgage with you and provide information about your current credit standing. Once this is established, they can help you determine whether refinancing would be to your benefit. If so, they can also offer you several quotes, based on the terms of the new loan regarding variable and fixed rates as well as the length of the payback period.
For more information about how to refinance mortgage loans, contact a bank in Knoxville. Come in or visit online for the best in customer service and knowledgeable refinancing answers.
