Benefits of Refinancing Your Home Loan
When considering a refinance, it is important to weigh the benefits of a refinance against the cost of a refinance. Here are some benefits you should consider.
Lower Your Interest Rate
Lowering you interest rate can equal big savings each month & in the long run. Even small changes in your rate will add up to big savings over the course of your loan.
Get Cash From Your Home's Equity
If you need extra cash, borrowing cash against your home's equity is a great approach. Rates will be much lower than using your credit cards or getting a personal loan, your payments are spread out over the course of the mortgage, making repayments each month a snap. Better yet, the interest on your mortgage is tax deductible!
Consolidate Debt
Refinancing and paying off higher interest debt is always a good move. Interest rates for mortgages are considerable lower than any credit card, personal loan, or auto loan rates and the interest on your mortgage is tax deductible!
Convert You ARM Into a FIXED Mortgage
If you currently have an ARM and want Keep your payments stable with a fixed rate loan. You can easily refinance and not have to worry about your mortgage payment going up.
Lower Your Monthly Mortgage Payments
If you are having trouble making you mortgage payment each month, you have options. You can refinance into an interest only mortgage or a loan with a longer payment schedule like a 40 year or 50 year mortgage to lower you interest rate. If you have had your current mortgage for some time, you may be able to refinance your current balance into a new 30 year loan and lower your payment that way.
Combine your 1st Mortgage & Home Equity Loans/Lines
2nd mortgages & home equity loans/lines generally have higher rates than a 1st mortgage. You can refinance these loans and reduce your overall interest rate and monthly mortgage payment.
Build Equity Faster By Refinancing & Pay Off Mortgage Sooner
If you can afford to make a monthly payment that is higher than your current payment, you may want to think about switching from a 30-year mortgage to a 15 or 20 year mortgage. You'll build equity quicker and save money on financing fees. In other words, you build equity faster and pay off your mortgage sooner.
