| When Should You Refinance Your Mortgage? There | | | | Ohio Mortgage Bankers Association |
| are two primary reasons to refinance a mortgage: to | | | | To learn more about Ohio Mortgage options you can |
| get a more desirable rate and terms or to extract | | | | check with the Ohio Mortgage Bankers Association, |
| cash from the home's equity. Both of these reasons | | | | founded in 1961. OMBA is a statewide organization |
| can of course also be fulfilled! | | | | devoted exclusively to the field of residential and |
| Rate-and-term refinancing | | | | commercial real estate finance. OMBA's membership |
| Rate-and-term refinancing pays off one loan with the | | | | comprises mortgage originators and servicers, as well |
| proceeds from the new loan, using the same property | | | | as investors, and a wide variety of mortgage |
| as collateral. This type of loan allows you to take | | | | industry-related firms. Mortgage banking firms engage |
| advantage of lower interest rates or shorten the term | | | | directly in originating, selling, and servicing real estate |
| of your mortgage to build equity faster. Rate-and-term | | | | investment portfolios. |
| refinancing refers to a myriad of strategies, including | | | | Members of OMBA include mortgage bankers, |
| switching from an ARM to a fixed or vice versa. For | | | | mortgage brokers, banks, mortgage insurance |
| example, if you have an ARM that is set to adjust | | | | companies, attorneys, credit unions, saving & loans |
| upward in a few months, you can refinance into a | | | | associations etcetera. |
| fixed-rate mortgage. Or if you have a fixed-rate loan | | | | OMBA is dedicated to the maintenance of a strong |
| and you know you will move in two or three years, | | | | housing, residential and commercial, real estate finance |
| you could refinance into a lower-rate 3/1 hybrid ARM. | | | | system. This involves support for a strong economy; a |
| Cash-out refinancing | | | | public-private partnership for the production and |
| Cash-out refinancing leaves you with additional cash | | | | maintenance of single and multi family home ownership |
| above the amount needed to pay off your existing | | | | opportunities; a strong secondary mortgage credit |
| mortgage, closing costs, points and any mortgage liens. | | | | delivery system; equitable tax laws; suitable shelter for |
| You may use the additional cash for any purpose. | | | | low income families and the disadvantaged; housing |
| For example, say you bought your house for $150,000 | | | | opportunities for the nation's veterans; appropriate |
| a few years ago and borrowed $120,000. Now the | | | | environmental measures; and fair and equitable |
| house has an appraised value of $250,000 and you | | | | bankruptcy laws. |
| owe $110,000. With a cash-out refinance, you could get | | | | OMBA consists of 145 member companies which |
| a mortgage for $150,000. You would pay off the | | | | represent approximately 80% of the mortgage lending |
| $110,000 you owe and pocket the $40,000 difference, | | | | business in the State of Ohio. |
| minus closing costs. | | | | |