You may decide to refinance to accomplish a variety of goals, but for some basic reasons: To save money by getting a lower interest rate or to save money by using a tax-deductible loan (the refinance) to pay off non-tax-deductible debt.
People most commonly use a refinance loan to:
- Convert a higher interest rate mortgage to a lower interest rate mortgage
- Lower their cost of debt by converting non-tax-deductible debt, such as credit cards or car loans, to tax-deductible mortgage debt.
- Convert an adjustable rate mortgage to a fixed rate.
- Consolidate a first and second mortgage into one lower-rate mortgage.
- To get cash for family needs/expenses (tuition, medical expenses, etc.)
- To reduce the term of their mortgage.
The key point to remember in all these instances is a refinanced mortgage offers you tax-deductible borrowing (consult with a tax professional). Is a refinance a smart move for you? To find out, contact us today. You’ll get an honest opinion on what’s most advantageous for you.
Meet The Team
Anthony DeNardis Executive Officer
Matt DeNardis Senior Loan Officer
Peter Clark Senior Loan Officer
Kim Wensley Loan Officer
Jessica Haselby Senior Loan Officer