Is now the perfect time to refinance your home mortgage? Thaureau Group can help you with straight talk and the right refinancing solution.

When is the best time to refinance your home mortgage? When mortgage rates go down or before your balloon payment is in sight? Is there a best time to refinance? When's the worst time?

Home ownership comes with many rewards, not the least of which is being able to borrow money at a low interest rate from the equity you've built up in your investment. The cash you borrow can be used for anything you want-consolidating debt, home improvements, paying for college, starting a business, etc.

When borrowing cash from your home, the first thing you need to decide is whether to refinance your current mortgage or to take out a home equity loan (sometimes referred to as a "second mortgage") or line of credit. One of our Thaureau Group specialists can help you make this decision. Contact us now, or read on to find out more.

Cash-out Refinancing vs. Home Equity Loans

We'll start by defining what your options. "Refinancing" put simply is replacing your current mortgage with a new one. "Cash-out refinancing" is a replacement mortgage that allows you to borrow more so that you can use some of it as cash. "Home equity loans" are in addition to your original mortgage and are often called "second mortgages." With a Home Equity Loan, you receive a lump sum that gets deposited into your bank account. A "home equity line of credit" is like a Home Equity Loan, but rather than receiving the money all at once, you draw from the loan the same way you would a checking account. The benefit is that you pay interest on only the portion of the HELOC that you use and you can continue to draw from and pay down your HELOC through the life of the loan.

There are many in the mortgage industry that will tell you a home equity loan or HELOC is less expensive and faster than refinancing. This type of thinking is based on shallow knowledge and may not have your best interest in mind. At Thaureau Group, we recommend that you first make sure you're in the right first mortgage before considering a second one. You may be paying too much or have a term that isn't right for your situation. Plus, having more than one mortgage means multiple banks to deal with and multiple payments to make each month. Refinancing may enable you to improve your first mortgage and build in the cash you need. It's a double win. Speak to a Thaureau Group Specialist to help evaluate if you should hang on to your first mortgage and refinance.

Once you establish that there's not a better alternative to your first mortgage, you can look at home equity loans and HELOCs.

Your current situation may not be the same as when you initially purchased your home. Refinancing allows you to adjust your mortgage to better fit your current needs. When you refinance you get to start from scratch with a new mortgage (without losing the equity you've built up in the old one, of course). You can change your term, get a better interest rate, change the mortgage type, etc. Each yields different results.

A Thaureau Group loan officer can help you with a variety of mortgage refinance options and terms, so you can have a customized solution that makes sense for you. Whether it's changing a 30-year variable home loan into a 20-year fixed-rate or lowering your mortgage interest with better terms.

Refinancing to meet your needs

Take advantage of lower interest rates to save money
If your current mortgage rate is higher than the interest rates lenders are offering today, refinancing can make real financial sense. Refinancing could reduce your monthly interest costs and save you both short-term and long-term money. If market interest rates are 1/2% to 5/8% lower than your current interest rate, you may want to consider refinancing. Use our refinancing calculator to see if refinancing makes sense for you. Also, your credit profile may have improved since you took out your current mortgage and you therefore might be eligible for better credit terms today.

Extend your term to lower monthly payments
If interest rates aren't lower than they were when you got your original mortgage; you can still lower your monthly obligation by extending your repayment period. If you change from a 30-year to a 40-year mortgage loan for example, you will have to repay the same principal, but over an additional 10 years. This can make a big difference in your monthly cash flow.

Get a shorter term
By changing to a shorter-term mortgage; you can effectively save a lot of money. While it might increase your current monthly mortgage payments, it can help you save thousands on interest down the road. You can be finished paying off your mortgage loan in 15 years instead of 30 and save all of those years of interest payments. Shorter loan terms also typically carry lower interest rates.

Change to a different mortgage type
Fixed rate mortgage? Adjustable rate mortgage? Interest only mortgage? What may have been right for you years ago might not be the best mortgage for you today. By refinancing you can change to the type of mortgage that really works for you. Use our mortgage comparison calculator to see which one is best for you.

Rates change. So can mortgage payments.

Are you paying too much interest on your mortgage? Are your home payments too high? Is it time to get out of your adjustable rate loan and lock in a fixed rate?

There are three primary reasons to refinance your home loan:

1. To restructure your current financing. For example, if you currently have a short-term balloon mortgage with total principal coming due, refinancing to a longer-term loan will eliminate the immediate need to make that large payment. Or you may be in an adjustable rate mortgage during a time of fluctuating interest rates and feel more secure by obtaining a fixed mortgage.

2. To reduce mortgage payments. When interest rates decrease, you can refinance with a different loan product or with the same one at a lower interest rate. You can even transition from a fixed loan with a higher rate to a variable interest rate loan with a lower rate.

3. To take equity out of your home as cash. The value of your home may be much greater than the amount due on your mortgage. If that's the case, you may be able to refinance the mortgage and take out cash against the built-up equity. You can use the money however you choose - to pay off other debt, do home improvements, etc.

Thaureau offers very competitive rates for refinancing. And the perfect loan for you - no matter what your loan situation.

When you refinance, you take out a new mortgage with a lower rate or more favorable terms, and use it to pay off your old loan. As a result, refinancing could save you a substantial amount of money over the course of the loan.

Traditionally, mortgage refinancing was valuable only if you could lower your interest rate by 1 to 2%. Today, that isn't the case. You need to consider more than just an interest rate.

Why should you refinance?

" Lower your monthly mortgage payment
" Consolidate debt
" Build home equity faster
" Protect yourself from fluctuations in the economy
" Reduce the amount of interest you pay.
" Utilize your home equity to provide cash for any need.
" Pay off your mortgage quicker with the same payment amount

These are all good reasons to consider refinancing. In this section, find out how to determine whether it's time for you to refinance and learn more about the benefits of mortgage refinancing. Use our refinancing calculators to help guide your decision.

At Thaureau Group, our home Mortgage Consultants are trained to listen to your needs and carefully assess your financial situation to provide the solution that makes sense for you. Ready to get started? Call 1-800-851-1882 or apply online, no obligation consultation with one of our Mortgage Consultants.