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:
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.