Can I Keep the same Mortgage rate if I refinance?

Can you refinance your mortgage with the same interest rate?
#mortgage #refinance #money #moneytips

This has become a very common question lately due to the high-interest rate environment that we are experiencing. Although it is possible to refinance your mortgage with the same interest rate when the market interest rates are comparable to what you have, this higher interest rate environment makes it very difficult to do so.

So why are people asking this if their rate is already low?

When digging deeper into the need to refinance now when the current mortgage interest rate is already low, we usually find out that there are two main reasons why people want to refinance:

1) Lower Payment: Due to inflation or life changes affecting the monthly budget, people need reducing their monthly payments.
2) Access to Equity: Accumulation of debt, deferred maintenance on the home or other property, family needs, healthcare expenses, and the need for emergency reserve funds are reasons we commonly see people refinance for access to their equity through a cash-out refinance.

Solution:

1) A Home Equity Line of Credit (HELOC): allows you to use only the funds needed and keep funds available for future needs. Interest is only paid on the amount owed. Your current mortgage is not touched.
2) A Stand Alone Second Mortgage (Closed-end Mortgage): the benefit is a fixed rate, and fixed monthly payment although unused equity may not be accessed unless a new mortgage is taken out. Your current mortgage is not touched.
3) Cash-out Refinance: the benefit is one monthly payment and may be easier to qualify although you’ll lose your current low-interest rate. You can extend the term back to a 30-year loan if needed.
Note:

It is important to speak with a licensed loan officer (like myself), your financial adviser (if you have one), and your CPA or tax professional (if you have one) before pursuing any of these options to ensure that you are making the best financial decision for yourself and family. Adding another mortgage or refinancing at a higher interest rate may solve some problems but it also means that you are increasing interest expenses on mortgages. This may be counterintuitive in the long run, significantly if interest rates don’t drop to the level we saw during the pandemic, but these options may help you in the short term.

Johan Alvarez
Delmar Mortgage | Branch Manager | Loan Originator
NMLS #167979
📲Office: 631-921-8560

[ravisrivastava]

I just watch ur new video for modifying and keep the same interests rate with refinancing