North Carolina (NC) Refinance Guide

Consumers often find it difficult to determine when it makes the most sense to refinance their home loan, and the amount of interest that must be paid is dependent in part upon the state in which the property is located. When reviewing refinance mortgage rates, rates in North Carolina remain some of the most competitive that are available. In fact, mortgage companies and banks are offering a variety of refinancing options to homeowners that would like to reduce their payments, pay off their balance quicker, or even cash out some of the equity in their home.

Closing Costs and Associated Fees

Banks and mortgage companies often have a schedule of fees that will be assessed during the refinancing process, and closing costs could be an additional expense as well. An appraisal of the home’s value will most likely be required, but the actual cost will depend on how extensive the lender requests the valuation to be. Attorney costs or title company fees must also be factored into the equation when determining what a refinance will cost. Some lenders offer a no cost closing option in which consumers will pay a slightly higher interest rate in exchange for not paying any fees. Depending on the length of time that the borrower is planning on staying in their home, a no cost option could make the most sense by helping avoid fees and related expenses.

Length of Loan Repayment

Lenders have a variety of terms available for a consumer to choose from, so it’s possible to design a loan to meet any specific needs that a homeowner may have. With the low refinance mortgage rates in North Carolina, a prospective borrower may find that they are able to transform their existing thirty year loan into a fifteen year term with similar payments. 30 year finance rates are perhaps the most commonly requested, but ten year and twenty year mortgage terms exist as well. Refinancing an FHA loan will often require that a borrower keep the same or reduce the repayment term.

When Refinancing Makes Sense

Prospective borrowers looking to simply save money on their existing loan without drawing out extra cash need to analyze their current mortgage. Consumers should review their refinancing options based on both monthly payment and the total cost of the new loan. For individuals looking to remain in their current home for years to come, refinancing with the lowest interest rates available could save thousands of dollars annually.

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