Refinancing
Why You Should Refinance?
Homeowners that have a higher interest rate on their current mortgage loan may benefit from refinancing. You can get lower interest rates, and you can shorten your loan term.
Remember, shorter-term loans typically have lower interest rates than longer-term loans. As a homeowner, refinancing can result in big savings.
Benefits of Refinancing:
Lower Interest Rate
If mortgage interest rates have dropped since you took out your loan, or your credit status has increased, you can usually save money by refinancing your mortgage loan into a new home loan.
Lower Monthly Payments
If you need to find space within your budget, then refinancing could be advantageous. You can extend the life of your loan, allowing you to have lower monthly payments.
Shorter Payoff Term
Many homeowners refinance their mortgage loans to change the term of their current mortgage. You will have the opportunity to pay off your loan faster.
Cash Out Equity for Other Uses
When you refinance, you have the opportunity to use some of the cash from your home’s worth towards other costs. This money can help you if you are sending your children to college.