Benefits of Refinancing

Refinancing your mortgage can have advantages

You're thinking about refinancing your mortgage.  Why should you refinance?  Here are some of the reasons why homeowners typically decide to refinance their current home mortgage. 

  • Lower Your Monthly Payments - If mortgage rates have gone down and are now lower than when you originally purchased your home, of if you have decided to go with an adjustable rate mortgage with a lower rate than the current rate, your monthly payment will decrease.
  • Build Equity Faster - If you are in a position to make a monthly payment that is higher than usual because of good fortune or an increase in salary, you may want to consider switching from a 30-year mortgage to a 15- or 20-year mortgage. 
  • Change the Loan Program Type - Perhaps you decided to go with an adjustable rate mortgage because of the low rates in the beginning. These types of mortgages can increase and your rate can fluctuate without warning.  You may have a desire to move to a fixed rate mortgage after starting with an adjustable rate mortgage because of its added stability. 
  • Managing Your Credit - If your credit score has gotten better because you've made your mortgage payments on time, you may be able to take advantage of that improved credit situation by refinancing into a loan with lower interest rates and decreased payments.
  • Debt Consolidation - You can use the money from a cash-out refinance to pay off other bills such as credit cards. 
  • Use the Equity In Your Home - You can use a cash-out refinance to tap into the equity that has been built up in your home.  It can then be used for a variety of purposes including paying off credit cards, sending a child to college or making improvements to your home. 

We would be more than happy to help you review your refinancing options and will work with you to determine what is best for you.  Contact us today to learn more!