Many homeowners consider refinancing as a viable option to save money while others are anxious their adjustable-rate mortgages might increase significantly and crave the certainty of a fixed-rate loan.
While there are many different reasons to refinance, here are 4 reasons most borrowers choose to go this route.
Shorten the term of your loan. Depending on when you originally received financing, refinancing to a 15-year mortgage might not be as expensive as the 30-year loan payment you have been paying each month. This would mean paying off your house earlier and opening up that cash flow to go somewhere else.
If you're interested in inquiring as to what your new payment could be, try our mortgage calculator to compare your current payment to what you could be paying.
Lower your interest rate. If you purchased your home a few years ago, there is a good chance your interest rate is higher than what they are currently at now. Why does this matter?... You could be saving hundreds of dollars each year by lowering your interest rate and therefore your monthly payments. This will allow you to continue adding to your home's equity but put some of the interest money back in your own pocket.
Move from an adjustable-rate mortgage to a fixed-rate mortgage. Even if rates are low, they may not stay there very long. Rates are always changing! Now might be just the perfect time to play it safe and lock in a low rate and have some peace of mind knowing your low payment will stay the same for the remainder of the loan. Contact me to see if you qualify.
Refinance to cash out home equity. This decision could be a great financial move to make in some situations. Often borrowers choose this method to get cash out of their home's equity to go towards purchasing an investment property, starting a business, or taking care of some other need or want.
If you're considering refinancing your home loan reach out today to discuss the best option for you!Contact Rebecca Ross