REFINANCE

Reason #1 🏠 to Unlock Monthly Savings

Thinking about refinancing to a lower interest rate or removing mortgage insurance? A refinance isn’t just a paperwork shuffle—it can be a powerful way to save money and reshape your financial future. Here’s why it might make sense for you:

💸 1. Pay Less Interest Over Time

Refinancing to a lower rate is like finding your favorite latte at half price—your monthly payments shrink, and every dollar you save on interest stays in your pocket. Even a 0.5% rate drop can save you thousands over the life of a 30‑year loan.

🔄 2. Streamline Your Refinance

No appraisal? No problem. If you qualify for a streamline refinance, you can skip the appraisal and income documentation, making the process faster and simpler.

🔓 3. Remove Mortgage Insurance

If your Loan‑to‑Value (LTV) is 80% or less, you can refinance to eliminate mortgage insurance—another line item off your monthly bill. Imagine the extra cash you’ll have each month to invest, save, or enjoy life.

📈 4. Find Your “Breakpoint”

A good rule of thumb is a 1–2% rate reduction to make refinancing worthwhile. But the real “breakpoint” depends on:

• How long you plan to stay in your home

• Total closing costs vs. projected interest savings

🧮 5. Crunch the Numbers with a Pro

Refinancing comes with its own fees—closing costs, lender charges, and possibly points. At Parish Lending, I’ll help you:

1. Compare your current rate and payment

2. Estimate closing costs up front

3. Calculate your break‑even point so you know exactly when the savings kick in

📞 Ready to See Your Savings?

Let’s find out if refinancing fits your goals.

Reason #2 🏠Consolidate Debt: Take Control of Your Finances

Credit card bills piling up? Juggling multiple high‑interest payments can feel like a nonstop tug‑of‑war. Refinancing your mortgage to consolidate debt can simplify your life—and save you money.

🔄 How Debt Consolidation Refinance Works

1. One New Loan
   Your new mortgage pays off all high‑interest debts—credit cards, personal loans, and more.

2. Lower Interest Rate
   Replace 18% – 25% APR credit cards with a mortgage rate in the 4% – 6% range.

3. Single Monthly Payment
   No more missed due dates or multiple statements—just one predictable payment.

💡 Key Benefits

• Big Interest Savings
  Rolling debt into your mortgage can knock years off your payoff timeline and save thousands in interest.

• Simplified Budgeting
  One payment means one date to remember—and more peace of mind.

• Improved Cash Flow
  Lower monthly payments free up cash for savings, investments, or fun.

❗ What to Consider

• Closing Costs: Factor in refinancing fees to ensure you break even.

• Loan Term: Extending your mortgage could increase total interest—balance monthly savings with long‑term costs.

• Discipline: Treat paid‑off credit lines as closed to avoid new debt.

📞 Ready for a Fresh Financial Start?

At Parish Lending, I’ll help you:

• Calculate your interest‑savings

• Compare refinance costs vs. benefits

• Structure a plan to pay off debt faster

Reason #3 🏊‍♂️ Pool Addition & Home Improvement: Tap Your Home Equity with a Refinance

Dreaming of a backyard oasis or a kitchen remodel but short on cash? Refinancing to unlock your home equity can be an affordable way to fund major upgrades—often at rates far lower than credit cards or personal loans.

💡 How a Cash‑Out Refinance Works

1. New Mortgage, Higher Balance
   You replace your existing loan with a larger one, borrowing the difference in cash.

2. Home Equity Conversion
   Lenders typically allow up to 80% loan‑to‑value (LTV) on a primary residence for cash‑out refinances .

3. Use the Funds
   Spend the proceeds on a pool, renovation, debt consolidation, or any major expense.

✅ Key Benefits

• Lower Interest Rates
  Mortgage rates on cash‑out refinances are usually 3–6%, compared to double‑digit credit‑card APRs.

• Single Payment
  One monthly mortgage payment simplifies budgeting.

• Home Value Growth
  Quality upgrades—like a pool or new kitchen—can increase your home’s resale value.

⚙️ Fannie Mae & Freddie Mac Guidelines

• Fannie Mae:

  • Maximum 80% LTV for cash‑out refinances on owner‑occupied homes .

  • Requires at least 12 months seasoning on your current mortgage.

• Freddie Mac:

  • Also allows up to 80% LTV for primary residences.

  • Accepts properties with 1–4 units and up to 85% LTV in select Home Possible® scenarios .

🛠️ Is a Cash‑Out Refinance Right for You?

• Equity Position: Do you have at least 20% equity in your home?

• Project ROI: Will the improvement add enough value to justify the new loan?

• Budget Impact: Can you handle the slightly higher mortgage payment?

• Break‑Even Point: Calculate how long until your savings or added home value offset closing costs.

📞 Let’s Plan Your Upgrade

Parish Lending makes refinancing for home improvements seamless:

1. Personalized Assessment of your equity and goals

2. Rate Comparison across wholesale lenders with one credit pull

3. Step‑by‑Step Guidance through application, underwriting, and closing

Unlock your home’s potential—let’s design the perfect plan for your pool or remodel today!