Mortgage refinancing can be a game-changer for homeowners looking to lower their monthly payments, reduce their interest rates, consolidate their debt, or improve their financial situation. But with so many options out there, it can be challenging to know where to start.
That’s why Guild Mortgage is the smart choice for homeowners looking to streamline the refinancing process and get the best possible results. In this article, we’ll cover the following:
- The Guild Mortage review
- Guild Mortage and cash-out refinance
- Benefits of cash-out refinance
- The downside of cash-out refinance
Guild Mortgage Refinance Review
Below is a detailed review of Guild Mortgage and why it is ideal for your refinancing solutions.
Guild Mortgage Overview
Guild Mortgage is an independent mortgage refinancing and lender established in 1961. The organization operates in 48 states with over 250 branches.
The mortgage lender operates online and through physical branches across the United States, providing homeowners with multiple options for refinancing their mortgages.
Guild Mortgage Refinance is an excellent option for homeowners looking to improve their financial situation and make the most of their home investment. With competitive interest rates, flexible terms, and a streamlined application process, Guild Mortgage makes refinancing accessible to many homeowners.
Benefits of Guild Mortgage
1. You can lower the monthly payments
One of the primary benefits of refinancing with Guild Mortgage is the opportunity to lower your monthly payments. By securing a lower interest rate or extending the term of your loan, you can significantly reduce your monthly mortgage payments and free up more money for other expenses.
This can be particularly helpful for homeowners struggling to keep up with their mortgage payments or looking to improve their overall financial situation.
2. Consolidate high-interest debt
In addition to lower monthly payments, refinancing with Guild Mortgage can also help you consolidate high-interest debt.
By taking advantage of the equity in your home, you can use the proceeds from your refinance to pay off credit card debt, personal loans, or other high-interest debts. This can help you save money on interest in the long run and simplify your debt repayment process.
3. Simple refinancing process
The application process for refinancing with Guild Mortgage is straightforward and can be completed online or in person.
You’ll need to provide documentation of your income, employment, and assets and undergo a credit check and appraisal of your home.
Once your application is approved, Guild Mortgage will work with you to finalize the details of your refinance and schedule your closing.
Guild Mortgage Products
Guild Mortgage offers a range of mortgage products to meet the needs of homeowners. Some of the products include;
1. Conventional Loans
Conventional loans are a popular choice for homeowners because they offer a fixed interest rate and predictable monthly payments over the life of the loan.
With Guild Mortgage, conventional loans are available with fixed and adjustable interest rates, allowing homeowners to choose the option that best fits their financial situation.
Some of the features of these conventional loans from Guild Mortgage include the following;
- Fixed and adjustable rates
- Down payments as low as 3%
- A standard down payment of 5% loans for manufactured-home loans
- 3% down payments on manufactured-home loans on FHLMC CHOICEHome Programs
2. Federal Housing Administration Loans (FHAs)
Guild Mortgage offers FHA loans, which are a government-backed option designed to help homeowners with lower credit scores or less cash on hand qualify for a mortgage.
Here are some key features of FHA loans with Guild Mortgage:
- A borrower can Qualify with a 3.5% down payment and 580 credit scores
- The loan can be approved with a score as low as 540 with a 10% down payment
3. Veterans Affairs Loans
Guild Mortgage also offers Veterans Affairs (VA) loans designed to help active-duty military members, veterans, and their families buy or refinance a home.
Here are some key features of VA loans with Guild Mortgage:
- No down payment is required for eligible borrowers
- Flexible credit score requirements and the ability to qualify with less-than-perfect credit
- Competitive interest rates and no private mortgage insurance (PMI) are required
4. Jumbo Loans
Guild Mortgage offers Jumbo loans, which are designed for homeowners who need to borrow more than the conforming loan limits set by Fannie Mae and Freddie Mac.
Below are some key features of Jumbo loans with Guild Mortgage:
- Fixed and adjustable rate options are available
- Flexible down payment requirements, with options as low as 10%
- Competitive interest rates and flexible terms
Does Guild Do Cash-Out Refinance?
Yes, Guild Mortgage offers cash-out refinance options for homeowners who have built up equity in their homes and want to access some of that equity in the form of cash.
With a cash-out refinance, homeowners can refinance their existing mortgage for more than they currently owe and receive the difference in cash at closing.
Some key features of cash-out refinance options with Guild Mortgage include:
- Borrow up to 80% of the home’s value in cash
- Use the cash for a variety of purposes, such as home improvements, debt consolidation, or other expenses
- Flexible loan terms and competitive interest rates
- The ability to customize the loan to meet the homeowner’s needs and goals
- Expert guidance and support from a dedicated team of mortgage professionals throughout the application process.
Below is an example of a cash-out refinance with Guild Mortgage;
Suppose you bought a home for $300,000 a few years ago and have paid down your mortgage to $200,000. In the meantime, the value of your home has increased to $400,000. With a cash-out refinance, you could refinance your existing mortgage for $320,000 (80% of the home’s value) and receive $120,000 in cash at closing.
You could use the $120,000 for various purposes, such as paying off high-interest debt, making home improvements, or covering other expenses. Your new mortgage would be $320,000, with a new interest rate and loan term customized to meet your needs and goals.
What Is the Downside of a Cash-Out Refinance?
While cash-out refinancing can offer homeowners a way to access the equity they have built up in their homes, it also has some potential downsides to consider. Here are some of the main drawbacks of a cash-out refinance:
1. Increased Debt
With a cash-out refinance, you are essentially taking on more debt by increasing the amount of your mortgage. This means you will be paying back more money over a longer period of time, which can be costly in the long run.
Additionally, if you use the cash to pay off other debts, such as credit cards or personal loans, you may be trading high-interest debt for a lower-interest but longer-term debt.
2. Higher Monthly Payments
Depending on the terms of your new mortgage, a cash-out refinance can result in higher monthly mortgage payments. This can strain your budget and make it more difficult to meet other financial obligations.
3. Risk of Foreclosure
If you are unable to make the higher mortgage payments that come with a cash-out refinance, you could be at risk of foreclosure. This can seriously affect your credit score and ability to qualify for future loans.
4. Closing Costs
As with any other mortgage refinances, a cash-out refinance comes with closing costs, which can be expensive. These costs typically include appraisal fees, title search fees, origination fees, and other expenses.
Depending on the size of your loan, these costs can add up quickly and eat into the cash you receive at closing.
What Is the Benefit of a Cash-Out Refinance?
The main benefit of a cash-out refinance is that it allows homeowners to access the equity they have built up in their homes. This can be useful for a variety of purposes, including:
1. Consolidating High-Interest Debt
Using cash from a cash-out refinance to pay off high-interest debt, such as credit cards or personal loans, you can save on interest charges and simplify your monthly payments.
2. Making Home Improvements
If you want to improve your home, such as adding a new room or updating your kitchen, a cash-out refinance can provide the funds you need to complete these projects.
3. Investing in Your Future
The cash from a cash-out refinance can be used to invest in your future, such as funding a college education or starting a business.
4. Covering Unexpected Expenses
Life is unpredictable, and unexpected expenses can arise at any time. A cash-out can provide a source of funds to cover these expenses without taking out high-interest loans or tapping into your retirement savings.
5. Lower Interest Rates
If you initially took out your mortgage when interest rates were higher than they are currently, a cash-out refinance can provide an opportunity to lower your interest rate and potentially save you thousands of dollars over the life of your loan.
Overall, Guild Mortgage Refinance is the smart choice for homeowners who are looking to purchase a home or refinance their existing mortgage. With a range of loan products and services tailored to meet the unique needs of homeowners, Guild Mortgage provides personalized service and support to ensure a seamless and stress-free experience.
Whether you are looking to lower your interest rates, access cash for home improvements, or consolidate debt, Guild Mortgage has the expertise and resources to help you achieve your financial goals.