GFI Purchase or Refinance

Purchase or Refinance

Home Purchase Loans

Deciding to purchase a home is an extremely important decision. It is critical that you carefully weigh all the advantages and disadvantages of this commitment. We recommend that you analyze your employment stability, review your credit reports, evaluate your financial status, and calculate your potential financial gain and how that fits into your overall financial plan. At GFI, consult with an industry professional to find out if home ownership is the right decision for you and to help select the perfect loan for your purchase.

Refinance

In recent years, Americans seeking to take advantage of low interest rates have lined up to refinance their mortgages. Refinancing is a way to save money and benefit from low interest rates. Specifically, it is the process of taking out a new mortgage and using the money to close out or pay off an existing loan.

Reasons to Refinance Include the Following:

  • Save money on interest rates. If you obtained your current mortgage when interest rates were considerably higher than they are now, then you can benefit from locking in a new rate. With a lower interest rate your monthly mortgage payment can be reduced significantly.

  • Convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. With an ARM, people often become distressed by continuously fluctuating mortgage rates resulting in fluctuating monthly payments. If interest rates are low, predictable monthly payments of a fixed-rate mortgage may be a major advantage and worth refinancing.

  • Convert an adjustable-rate mortgage (ARM) to an ARM with more desirable features or lower rates. You want an adjustable-rate mortgage that offers better protection than your current loan and offers significant savings. Even though the interest rates on ARMs fluctuate with prevailing market rates, you may have one that's tagged to higher indices-and carries a higher interest rate-than other ARMs currently available.

  • Build up equity faster. If your financial resources have improved since you obtained your mortgage, you may want to convert to a mortgage with a shorter term [perhaps a 15-year mortgage instead of a 30-year mortgage].

  • Convert equity to cash. If you've held your mortgage for a long time, you will have substantially reduced the outstanding principal on your loan. This means you'll be able to finance a considerably larger amount than you owe on your current mortgage.