When is the best time to refinance your home loan?

A home loan refinance replaces an existing mortgage with a new one, and you can customize details on the new loan including the type of interest rate, the term length, and the amount borrowed. Scissortail Financial will help you set clear financial objectives to choose the most appropriate way to refinance your home mortgage.

Whether interest rates are increasing or decreasing, home loan refinances are common.

There are several reasons why you
may want to refinance your mortgage:

• Lower Your Payments
• Reduce your interest rate
• Home improvement
• Remove mortgage insurance
• Shorten your loan term
• Consolidate Your Debt
• Move from an adjustable rate mortgage to fixed rate
• Get Cash from Your Home
• Increase cash flow
• Keep Your Payment from Rising
• Remove a borrower from your existing note

There are times when refinancing your mortgage sounds like a good thing, but once you calculate the big numbers, you can find out it doesn’t make sense.  We will help calculate those big numbers for you so you can make the decision if refinancing your mortgage is right for you.

The most common reason to refinance is to reduce your interest rate. Borrowers realize that by reducing their interest rate with a refinance, it greatly reduces the amount of interest paid over the life of the home loan. Even small reductions in rate can make a big difference over the span of 10,15,20 or 30 year mortgages.

A mortgage refinance typically closes in a short amount of time and can often require less paperwork compared to a purchase loan. If you are trying to decide if a refinance is right for you, contact a licensed mortgage specialist at Scissortail Financial to discuss your options for refinancing.

Learn more about the mortgage process

Common Refinance Considerations

Can I use my home's equity to eliminate other debts? For homeowners with credit cards, car loans, student loans, second mortgages, or other personally secured debts, a cash-out refinance can be a powerful tool. Scissortail Financial can show you how to consolidate debt and pay them off with a cash-out refinance OR how you can simply refinance into a lower monthly payment to free up the cash flow to become debt-free. When consolidating other debts into one new loan, you can create one much lower monthly payment compared to your existing debt load. Many times, this strategy can leave you with only one remaining loan to pay off and greatly increase your cash flow within your monthly budget.

Have you thought about turning your current home into your dream home? In a market where inventory is hard to come by, homeowners can use their equity to turn the home they’ve got into the home they’ve always dreamed of. With investment in the right improvements, you can fall in love with your current home all over again and increase the value of your home in the process.

Do I have a financial safety net? Many clients use a cash out refinance to access their home's equity and turn it into liquid cash to save as a great financial safety net for future use. This can become a low-interest lifeline for when future unforeseen expenses arise  — even if they don’t intend to use it right away.

Can I pay off my student loans with my mortgage? Tired of endlessly paying on those student loans and not seeing much of a decrease in the principal? You might consider rolling your student loans into a refinance of your mortgage to help manage debt and keep your monthly payments as low as possible.

Have you talked with your financial planner about investing some of your equity? Home equity is an asset that homeowners should factor into their comprehensive financial strategy, and Scissortail Financial can help. We can show you how you can free up that equity for investing. We can even show you what it might look like to downsize into a smaller home with lower fixed homeownership costs to free up more money to invest in long-term wealth.

Could home equity help you take the next step with your small business? A cash-out refi can be a cost-effective way for the entrepreneurial-minded homeowner to fund small business expenses, including down payments and other costs associated with starting or running a business. We can help turn your home equity into long-term business growth at an affordable interest rate.

Am I ready to acquire additional real estate? Is it your goal to purchase a second home for vacations, an investment property to rent, or raw land? You can put the home equity of your primary residence to work for down payments or even a total acquisition of these types of purchases with a cash out refinance.

Learn more about the process Questions You Should Ask

The experts at Scissortail Financial will arm you with helpful mortgage information plus other valuable resources to help make buying your home quick and easy! 

Step 1 is to make loan application.  To make it easy, Scissortail Financial does not charge loan application or credit report fees to get started.  Scissortail Financial is here to help you every step of the way.