With interest rates hovering near all-time lows for most of 2021, we’ve been receiving a lot of refinancing questions. Refinancing your mortgage is a great option in many situations, including lowering your monthly payment, withdrawing cash from your home’s equity, or becoming the sole borrower on your mortgage. But did you know that you can also refinance to drop private mortgage insurance (PMI)?
What Does It Mean to Refinance to Drop Private Mortgage Insurance?
PMI is often required on conventional loans with less than a 20% down payment. While private mortgage insurance is a great tool that helps many people purchase their homes, it can add up over the life of your loan. That’s why in many cases, we recommend a refinance to drop private mortgage insurance.
This type of refinance would essentially give you a new loan without private mortgage insurance and depending on the interest rate on your original loan, often a better interest rate. In most instances, because of both of these items, it would also lower your monthly mortgage payment.
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What Are the Costs?
Before you set your sights on this type of refinance, we need to discuss the costs. Depending on your refinance, you may need to pay closing costs which can account for $2,000-3,000.
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Refinancing With Mortgage Specialists
The Mortgage Specialists team is committed to providing clients with outstanding customer service. We take the time to discuss our clients’ financial goals to ensure they receive the right loan for their financial future. You will always have someone on your side when working with us. And don’t just take our word for it, see what past clients say about working with us.
If you are considering a refinance, please don’t hesitate to contact us at (402) 991-5153. We’d be more than happy to help you determine what would be in your best interest. Or click the button below to begin the refinancing process today!