If your current interest rate on your mortgage is significantly higher than today’s lowest interest rates, you may be able to save thousands of dollars by refinancing.
Still not convinced? Here are a few more points to consider:
- Remove the cost for mortgage insurance. If you have reached 20% equity in your home and have an FHA Loan, you may be able to refinance to a conventional mortgage product and remove the cost for mortgage insurance.
- Convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. Interest rates–and subsequently monthly mortgage payments–for an ARM can increase or decrease based on market conditions, so many people are more comfortable switching to a fixed-rate mortgage that has a steady interest rate and steady monthly payment. If you decide to stick with an ARM, you may be able to refinance your existing loan by getting another one with terms that are more advantageous to you.
- Combine two mortgages into one. If you have both a primary mortgage and a second mortgage, you could refinance both by paying them off and replacing them with one new mortgage.
Don’t forget about these traditional ways you can benefit by refinancing your mortgage:
- Lower your interest rate. A lower interest rate than what you have now will immediately decrease your monthly mortgage payment and reduce the amount of interest you are paying.
- Use your mortgage as a cash tool. If you refinance for an amount greater than what you owe on your home, you can receive the difference in a cash payment to be used as you wish.
- Build equity in your home quicker. With lower monthly payments, you may be able to make additional payments and build up equity in your home more quickly.
- Roll closing costs and fees into your loan. If you’ve had your current mortgage for at least three years, you may be able to include your closing costs in your new loan and still end up with a mortgage that’s smaller than your original loan–with a lower interest rate and lower monthly payment.
CONTACT US TODAY for a mortgage consultation. Together we can decide if refinancing is a good option for you.