Reasons why refinancing may be right for you:
Refinancing your home can save you thousands of dollars and relieve some headaches you may be enduring on your current mortgage payment. Here are a few reasons as to why refinancing may be a good idea for you:
1. Lower your Monthly Mortgage Payments: It’s inevitable, mortgage rates fluctuate. If you happen to catch them at a time where they are lower than when your home was originally financed, monthly payments can be decreased. You could also adjust the term of the loan from 15 to 30 years.
2. Cash-Out Refinance: This means that you refinance your mortgage for more than you currently owe and pocket the difference. Cash-out refinancing allows you to tap into the equity that your home has built and use it to your advantage.
3. Refinancing to a Fixed Rate: Transitioning from an adjustable-rate mortgage to a fixed-rate mortgage can put your mind at ease as well as save you money. Fixed-rate mortgages allow you to have a sense of stability knowing that your mortgage rate will stay the same throughout the term of your loan. Also, as rates fluctuate, your interest and principal will never go rise.
4. Build Equity: If you were in a position where you can pay a higher payment than usual, then switching from a 30 year mortgage, to a 15 or 20 year may be the best idea. This would allow you to build equity quicker and save even more money on financing fees.
5. Handling Your Credit: Generating improved credit scores would be another reason to refinance. If your credit score has increased because your mortgage payments have been made on time, you may be able to refinance with lower interest rates and have decreased payments.
Right now mortgage rates are extremely low. If you have ever been interested in looking into refinancing your home, now would be the time to do it. Take advantage of these low rates and save yourself some money!