Already own a home? Refinancing your current home loan can help you to consolidate debt, move your Adjustable Rate Mortgage (ARM) to a Fixed-Rate mortgage if you are facing an increase in interest rates, or lower your monthly payments by reducing your monthly interest rate.

There are two types of ways to refinance: a Rate-in-Term refinance or a Cash-Out refinance.

If your current interest rate is higher than the current market interest rates, it may be to your advantage to speak with your loan advisor about a rate-in-term refinance. A rate-in-term refinance allows you to lower your interest rate to the current market rates. A rate-in-term refinance also gives you the ability to extend your loan over a longer period of time in order to reduce current payments, or you can shorten the term of your loan in order to save on interest payments over the course of the loan.

If you are interested in remodeling your home, making a large purchase or if you are looking to consolidate outstanding debt, a cash-out refinance may be the best option for getting the cash you need. A cash-out refinance allows you to pull from the equity in your home – your savings – in order to get the money you need to do the things you want to do.

Are you uncertain about the future of your Adjustable Rate Mortgage? While an ARM may have been the right option at the time of your loan, you may be looking for greater stability in your monthly payments. Refinancing allows you to change your ARM into a fixed-rate mortgage to provide you with more predictable monthly payments.

Remember: because this is a home loan, the interest on your loan may be tax deductible. Speak with your loan advisor today about the refinancing options that are best for you!