Top 5 Reasons To Refinance Your Mortgage
Should I refinance my home? A lower internet rate is the number one reason folks decide to refinance their mortgage, but there is more to it than that. Take a look at our top five reasons to refinance and see if this helps give you a clearer picture of your situation.
1. Put money back in your pocket every month.
The number one reason to refinance is to obtain a lower interest rate. So, why is this such a big deal? That's an easy one to answer. Lower rates translates to lower monthly payments (assuming you don't shorten the term or increase the loan balance significantly). And that means more in your checkbook every month to spend on other important things in life, like hockey dues and piano lessons.
2. Get cash for big expenses.
Pay that tuition. Take a dream vacation. Remodel the kitchen. If you need a larger sum of money, a cash-out refinance gives you more than just a new loan. You'll walk away from the closing table with enough to take care of those bigger plans.
3. Readjust your thinking about that adjustable rate mortgage.
It seemed like the right idea at the time, but if you have an adjustable rate mortgage and the worry over the direction of interest rates has been keeping you up at nights, a refinance with a fixed rate loan could help you rest easy. A fixed loan with a higher rate than your current ARM may make sense in the long run. It keeps you safe from inflation and makes budgeting easier.
4. Consolidate your debt and take control of your finances.
Use some of the proceeds of your refinance to consolidate your debt into a single, low-interest payment every month. Face it, it all adds up. Charge cards. Personal loans. Car payments. A refinance can help you get control over your debt situation. It may even have the added benefit of helping your tax situation as well. Of course, ask your tax advisor to be certain.
5. Get out of debt faster!
A fifteen year or a bi-weekly loan may be possible without even raising the payment significantly, particularly if rates were high when you first financed your home. You could save thousands in interest and own your home many years before you would with a standard 30 year loan.
Get your questions about refinancing answered.Please contact us for a no-obligation, no-pressure consultation. We're local mortgage professionals that provide straight and honest answers without the hard sell. Get Started Now. Take a couple quick minutes to fill out our free home purchase or refinance questionnaire and a local, knowledgeable, mortgage professional will contact you within 24 hours.