Refinancing with Key One Capital Mortgage Corporation


Why Refi?

There are multiple reasons to refinance a mortgage. The most obvious reason is to get a lower mortgage rate. The average interest rate on an outstanding mortgage at the beginning of 2012 was 5.098 percent, according to the Bureau of Economic Analysis. However, lenders today are offering rates well below that benchmark, making a refinance a viable option for many. But low rates are not the only motive for refinancing a home loan. The following are good reasons to consider a refinance.

Adjustable to Fixed

Stability-hungry borrowers are ditching adjustable-rate mortgages and refinancing into fixed-rate loans. Although a 30-year fixed rate is traditionally the highest, the rate is set for life.

Adjustable to Adjustable

Other borrowers choose to move from one ARM to another. As the rate approaches the time of adjustment downward, borrowers are able to secure new ARMs to extend low rates for additional time.

Cash-Out Refinance

Homeowners with equity or mortgage-free homeowners sometimes choose mortgages to put cash in their pockets. The “cost of money” is so inexpensive right now that it may make sense to use equity for other purposes. Some clients choose to take advantage of low housing costs to buy an investment property. Others refinance to pay off higher interest debt.