Refinancing is also a good tool for consolidating debt. Take credit card debt, for instance. You may be paying 15% or more. Your mortgage is a lot lower percentage. By tapping your home equity, you get from refinancing, you can pay that down.

Refinancing is also a good option if you want to replace your adjustable-rate mortgage with a fixed-rate mortgage and lock in the rate, avoiding any potential interest rate increases down the road.

In some cases, changing the length of your loan when refinancing can be advantageous. If you’re doing well in your business or career and making more money now, you may want to also consider refinancing into a shorter loan. Sure, your monthly payments can go up, but you can save thousands in interest payments over the life of the loan.

Using refinancing to lower your rate. We got that down.

If you have already paid off a lot of your mortgage or the value of your home has gone up, your loan-to-value ratio (LTV) will be smaller, which makes your loan less of a risk to the lender and can help you qualify for a lower, more favorable rate. If you have more than 20% of equity in your home, you can also use refinancing to get rid of the added expense of private mortgage insurance that you were initially required to carry. You can refinance as often as you like if your lender allows and does not charge prepayment penalties

Unlock the equity in your home and unleash its earning power

It’s like the equity you have built up is locked up in jail. Refinancing is the key. We help you take the cash out and invest it in a property or stocks.

You can make that money work for you. For instance, let’s say you take $100,000 in equity out of your house and use it to purchase a $500,000 property. Now, as home values increase, say 7% for example, your net worth can rise. Earning 7% on $100,000 in equity is okay, but 7% appreciation on a $500,000 home is much more. That’s how the rich gets richer. That’s how you can get richer, too.

Understanding the inverse relationship between interest rates and home values

As interest rates drop, home values go up. When people buy a home, they buy it based on a monthly payment. As interest rates drop, the payments drop. If a person can afford $2,000 a month, they look for a home for that price point. The $2,000 can afford more house with lower rates. That demand will push the price up, so if you’re a home owner, your equity increased when rates went down.

This is then a good time to refinance and take out your equity. You can then use that low-interest-rate money to invest at a higher rate and make money on the spread. Now your money is working for you, you aren’t working for your money.

What’s your type? Refinancing for every type of homeowner.

There is rate-and-term refinance where the balance on your present mortgage is transformed into a new loan at a better rate and/or term. Then there’s cash-out refinance, where you can liquidate some of equity in your home and create a new loan made up of the previous balance on your mortgage, plus the cash you took out.

There’s also debt consolidation refinancing, which is essentially a cash-out refinance and works in the same way. Your old mortgage will be replaced by a new one that includes the money you took out. You can use this cash any way you please – renovate your home (which could increase your home’s value), pay for your children’s college education, cover unexpected medical bills, or even buy a new car.

Act fast. We do.

At East Lake Mortgage, we pride ourselves on your efficiency. We can usually get a loan done in 3 to 4 weeks. If you’re a business owner, refinancing typically takes longer. We can do it in weeks, as opposed to months that other mortgage companies sometimes take.

If coming up with closing costs is your concern, you can relax. We can eliminate any out-of-pocket closing costs by simply incorporating them into your loan. We want to make your refinancing process as easy and simple as possible.