The document discusses refinancing a mortgage loan. Refinancing allows a homeowner to pay off their current mortgage and take out a new loan, potentially lowering their interest rate and monthly payments. It describes factors like equity, the difference between a home's value and remaining loan amount, that give homeowners options when refinancing. The document outlines pros like saving money, and cons like taking on a larger debt and restarting the repayment period. It provides tips for determining if refinancing makes financial sense and getting started with the process.

1. Refinance Your
Mortgage
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2. Obtaining a mortgage with a
lower interest rate or lower
monthly payments can save you
thousands of dollars over the
course of the loan.
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3. What is Refinancing Your Mortgage All
About?
• Refinancing is paying off the loan you currently
have and taking out a new mortgage loan.
• Your current loan gets paid off in the refinance
when you close on the new loan.
• It’s usually easier to refinance than it is to acquire a
mortgage loan in the first place.
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4. What is Equity?
Current value of home Minus What you still owe on it
Equity
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5. What Does Equity Mean to You?
Your equity is what gives you all kinds of choices in
refinancing your home.
Tip: Any time your equity is enough so that you’re
financing less than 70% of your home’s value, it’s easier
to find lenders that will compete for your business!
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6. Cashing Out Your Equity
When you receive cash along with
your refinance.
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7. Paying off your current debts
and then making your new
mortgage payments on time will
build some great credit!
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8. Pros to Refinancing Your Mortgage
• You can lower your monthly payments.
• You can lower your interest rate.
• You can change from a variable interest rate
mortgage to a fixed interest rate mortgage.
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9. Pros to Refinancing Your Mortgage
• You can cash out your equity:
o Use the cash to pay off higher interest debts.
o Consolidating your debts in this way means one monthly
payment instead of many.
o You can pay cash for a major purchase instead of taking
out a higher interest loan.
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10. Pros to Refinancing Your Mortgage
• You can raise your credit score.
• You can receive some nice income tax
deductions…
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11. Income Tax Deductions
• In the USA, if you itemize your deductions on
Schedule A, you can deduct interest payments
on your home’s mortgage from your income.
• Credit card interest, however, isn't tax
deductible.
Meaning…
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12. Income Tax Deductions
By using your equity to pay off your credit cards
and putting that debt into your home mortgage,
you’ve lowered the interest you pay on your credit
card debt while, at the same time, making it tax
deductible!
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13. Cons to Refinancing Your Mortgage
• You’re starting over on your mortgage, so it may
take you longer to pay it off than if you had not
refinanced.
• Your mortgage debt will be larger than before
the refinancing, due to closing costs and if you
take out some cash.
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14. Cons to Refinancing Your Mortgage
• Your monthly payments may be larger than
before if you cash out some equity in the
refinance.
• With the new mortgage, you may be subject to
early pay-off penalties if you wish to pay off a
large portion in the near future.
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15. How to Get Started
See a mortgage broker
to help you find a lender!
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16. Modifying Your Current Mortgage
Loan
• If the value of your home has decreased,
consider modifying your mortgage loan.
• You may be able to lower the interest rate, your
monthly payments, or even the principal on the
loan by modifying it.
• However, trying to get a loan modification can
be challenging!
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17. Modifying Your Current Mortgage
Loan
1.Contact your lender to apply for a loan
modification.
2.Keep in regular contact with them by phone and
fax regarding the status of your loan modification
request.
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18. Modifying Your Current Mortgage
Loan
• Contact the department heads for the various
departments you work with as your application
progresses.
• Send faxes to the specific departments requesting regular
updates.
• Record your phone calls, if possible.
• Write down the name of anyone you speak with, the date,
and a summary of each conversation.
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19. Modifying Your Current Mortgage
Loan
• Utilize the internet for information on working
with your lender!
Tip: With good communication and
knowledge of how to help the process go
smoothly, your loan modification can be a
success!
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20. Self-Reflection Questions:
• Do I have a fixed or adjustable rate mortgage?
• Is the refinanced rate low enough to justify the switch?
• How much equity do I have in my home?
• How long will it take me to “pay off” the costs of
refinancing and begin realizing my savings?
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21. Self-Reflection Questions:
• Do I plan on staying in this house for a long time
or will I be moving in the future?
• Am I looking for lower interest, lower payments, or
to cash out my equity?
• If I cash out my equity to pay off other debts, do I
have the discipline to stay out of debt once my
current debts are paid? What will I do with my
credit cards?
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22. www.lifethenfinance.com
Action Tips:
• Research the terms of your loan to see if it’s
worth shaking up the status quo.
• Estimate your home’s current value and
determine if you have enough equity to give
you some advantages in refinancing.

23. www.lifethenfinance.com
Action Tips:
• If you’re considering refinancing your mortgage, meet
with a reputable mortgage broker to discuss your
situation.
• After meeting with the mortgage broker, write down the
pros and cons of refinancing your mortgage. This will
help you make an informed decision to refinance or not.