5 Reasons To Refinance Your Mortgage
Mortgage refinancing is a hot topic for many homeowners. The lure of lower interest rates and the opportunity to get out from under an unaffordable mortgage can be strong reasons to refinance. In some cases, refinancing makes sense even when the homeowner doesn’t have any equity in their home.
Refinancing your mortgage is the process of obtaining a new mortgage loan to pay off your current mortgage loan. You may want to refinance your mortgage if you can get a lower interest rate than you’re currently paying, if you want to shorten or lengthen the term of your mortgage, or if you need to take cash out of your home’s equity.
Millions of Americans refinance their mortgages each year. There are many reasons to do so, but here are five of the most common ones.
Lower your monthly payments
When you refinance your mortgage, you are essentially taking out a new loan to pay off your old one. This can be helpful if interest rates have gone down since you took out your original mortgage, as you may be able to get a lower interest rate on the new loan.
Additionally, if you have been making payments on your mortgage for a number of years, you may have built up some equity in your home. This equity can be used as collateral for the new loan, which may allow you to borrow more money and get a lower monthly payment.
The fixed period on your adjustable-rate mortgage is ending
There are a few reasons why a fixed period on your adjustable-rate mortgage might be ending. Perhaps the most important reason is that, when the fixed period is up, your interest rate will adjust to reflect current market conditions. This could mean that your monthly mortgage payment will go up, which may be difficult for some borrowers to afford.
Another reason to refinance at this time is to take advantage of historically low interest rates. If you have a high interest rate on your current mortgage, refinancing could save you hundreds of dollars each month. In addition, refinancing can provide borrowers with some much-needed cash flow by allowing them to borrow against their home’s equity.
You can afford higher monthly payments
Refinancing your mortgage could free up some extra cash each month, which you could use to pay off other debts or invest in yourself or your family.
Additionally, If you’ve been paying your current mortgage for a while, your interest rate may have gone up, while the current market interest rates are much lower. Refinancing to get a lower interest rate could save you thousands of dollars over the life of your loan.
You want to consolidate debt
When you consolidate debt, you take all of your various debts and combine them into one loan with a lower interest rate. This can be a great way to save money and simplify your finances.
Your credit score has improved
Credit scores are one of the most important factors in refinancing. A high credit score means a low interest rate, and that can save the homeowner thousands of dollars over the life of the loan. In addition, a high credit score means a low monthly payment, which can free up cash flow for other purposes.
There are many reasons to refinance your mortgage. The five reasons listed above are just a few of the most important ones. If you are thinking about refinancing, be sure to consult with a qualified lender like Global Integrity Finance to see if it is the right decision for you.
With our low interest rates and flexible terms, we can work with you to find a mortgage that fits your needs. We’ll help you get the most out of your home, and our experienced team will make the process easy and stress-free. Contact us today to learn more about refinancing your mortgage with Bartling Lending Partners !