Refinancing: Reasons to Refinance | HSBC

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Reasons to Refinance

Refinance reasons represented by a family enjoying in their home.

If you are looking to refinance your mortgage, HSBC can help you determine your needs and choose the right loan for you. Here you'll find information to help you decide if refinancing your mortgage is right for you.

Reasons to Refinance

Here are a few reasons why refinancing could be right for you.

Reason One: Refinancing to lower monthly payments

If you are interested in lowering your monthly mortgage payments, either because you have additional expenses or you foresee a reduction in household income, refinancing may lower your mortgage rate or extend your mortgage term, or both.

Reason Two: Refinancing to a Fixed Rate Mortgage

If you currently have an Adjustable Rate Mortgage (ARM) and your payments are expected to increase due to an expected mortgage rate increase or you would like to benefit from the convenience of a guaranteed fixed payment amount for your loan term, refinancing may be a good option for you.

Reason Three: Refinancing to Access Equity in Your Home

If you want to turn the equity you have built in your home into cash for additional expenses like home improvement, medical expenses or other financial needs, refinancing would be a great option for you.

Refinancing: Things to Consider

If you choose to refinance, you should be aware of a few things.

  • Refinancing incurs additional closing costs that you should weigh against the benefits of refinancing.
  • Refinancing could increase your loan term meaning you end up paying more in interest expenses over the life of the loan.

The Right Time to Refinance

A good time to consider refinancing your mortgage is during a period of falling mortgage rates or if your home has seen a dramatic rise in market value. However, in all circumstances, the benefits of refinancing should be weighed against the costs.

As Mortgage Rates Fall

This can be a great time to refinance your home. If you decide to refinance, you may reduce your total loan interest cost over time in two ways:

  • Keep your current repayment term and lower your monthly payments
  • Maintain your current monthly payments and shorten your repayment term
Your Home is Worth More

If you want to take advantage of an increase in your home's value, refinancing can help you access the equity in your home to help pay off high-interest debt (credit cards or other types of loans), or pay for big purchases, like a home renovation or your child's college tuition.

Refinancing Programs from HSBC

The two types of Refinancing programs we offer at HSBC are Full Documentation Refinance Programs and Streamline Refinance Programs.

Full Documentation Mortgage Refinance Programs

This program is available in two forms:

  • Rate/Term Refinance: Choosing this type of refinance program may give you the option of reducing your interest rate, loan term or both. Rate/Term Refinance allows you to pay off your existing mortgage and include the new closing costs in the new mortgage amount.
  • Cash Out Refinance: Turn the equity in your home into cash that you can apply to a variety of purposes. Many programs also offer the option of cash out.
Streamline Refinance Programs

Streamline Refinances allow you to lower your interest rate and monthly payment while requiring a minimal amount of documentation. If your existing loan has a higher-than-market interest rate, you may be eligible for our "streamline" refinance program.

NOTE: Streamline Refinance programs do not allow cash out at closing.

Refinancing Resources

Our refinancing resources can help you decide whether refinancing is right for you. Get answers to all your refinancing questions with our convenient Mortgage Calculators, Mortgage FAQs and Loan Application Checklist.

Refinancing: Getting Started

To get started on a new refinancing application, request a callback from one of our mortgage professionals or call 1.866.731.4722.

For more information on Refinancing, read the Consumer Guide to Mortgage Refinancing*.

Mortgage and home equity products are offered in the U.S. by HSBC Bank USA, N.A. Subject to credit approval. Borrowers must meet program qualifications. Programs are subject to change. Geographic and other restrictions may apply. Discounts can be cancelled or are subject to change at anytime and cannot be combined with any other offer or discount.

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ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES ARE NOT FDIC INSURED ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES MAY LOSE VALUE
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