Refinancing Your Home

Refinancing from a higher rate to a lower rate and from a longer term to a shorter term has been a way to provided money for home improvement, debt consolidation, paying off student loans, and other investments. With interest rates remaining low Hotchkiss Financial has originated more refinance loans than purchase loans over the last several years. We complete an analysis of several factors before recommending that borrowers refinance. Those factors are as follows:

  • Market sales analysis to determine if the property will appraise for an amount that will support the refinance loan

  • Interest rate analysis to determine if the new interest rate is significantly lower than the existing interest rate. Sometimes the refinance does not make sense if the rate is not that much lower considering the closing costs that will added in which increase the new loan. In these cases we do not recommend refinancing.
  • Borrower needs an analysis done to determine if the refinance makes sense even if the rate is not much lower. Example: Cash out is needed for home improvement, debt consolidation or paying off student loans and the borrower is not refinancing for the sole purpose of obtaining a lower interest rate. Refinancing is often times recommended but only after a thorough analysis is done.

    Apply Today!