Purpose

When considering whether or not to refinance your home loan it is important to determine what you wish to achieve by doing so.  A new loan can alter the monthly payments owed on the loan either by changing the loan's interest rate, or by altering the term to maturity of the loan. Refinancing is used in most cases to improve overall cash flow for our consumers.

Another purpose of refinancing your loan is to reduce the risk associated with your existing loan.  For example if you currently have an adjustable rate mortgage you may want to consider a fixed rate so you are not subject to fluctuations in the financial markets.

Considerations

If you are like most Americans you likely have some credit card debt.  While there are some decent credit arrangements out there most contain very high interest rates.  Paying off these debts through a refinance can help you more easily manage your bills and lower the amount of interest you pay (in nearly every case).

Also keep in mind a refinance transaction is a fairly complex arrangement and you will incur costs to close your loan.  Be sure to carefully analyze your loan estimates to ensure an offer is not simply too good to be true.  First Omni prides itself in offering competitive and realistic offers to our consumers.  Not every mortgage company and bank in our industry can say the same.

Also it's important to understand that some things you may have heard about a home loan refinance are just myths. Two of the most common home mortgage refinance myths are how long you need to own your home before refinancing and the myth that you need lower your rate at least one percent on your refinance to make it worthwhile.  Please inquire for more information about how these myths are not always true.