Mortgage Refinance can help homeowners take control of their financial future. If you find yourself struggling to make your monthly mortgage payments, switching to an affordable new mortgage could save you thousands of dollars per year in interest payments and fees. Read on to learn about the benefits of refinancing your mortgage and how to get started today!
A Better Mortgage Rate
Refinancing to secure a lower interest rate can save you thousands in interest over time, but it is not guaranteed. Your new loan may have different repayment terms, so it is important to closely look at your current and future financial situation to make sure you can afford it. With lower monthly payments comes less wiggle room should life take an unexpected turn. After all, if you were not able to pay your bills before, you might not be able to make extra payments now. Mortgage Refinance may also allow you access to better payment plans or mortgage types (such as interest-only) that could help build equity faster by reducing your loan term or principal balance sooner.
Lower Monthly Payments
Many homeowners turn to refinance their mortgage to lower their monthly payments. Mortgage Refinance can also help with interest rate issues, making it easier for you to pay off your home early or invest in additional properties. Refinancing your mortgage can even provide you with an opportunity to switch to a different type of loan. For example, if you have an adjustable-rate mortgage (ARM), you might be able to take advantage of a low-interest introductory rate. With today’s historically low-interest rates, there has never been a better time to refinance your mortgage! Before doing so, you must calculate what effect getting a new loan would have on your future finances.
More Predictable Costs
By refinancing your mortgage, you can significantly reduce your monthly payments and interest rates. Refinancing to a lower rate makes it easier to predict what your monthly costs will be for as long as you keep that loan. You may also find that saving money month-to-month means paying off your mortgage even faster, which allows you to build equity in your home more quickly. In addition, by choosing a 15-year or 20-year term instead of 30 years, for example, you can often save thousands in interest charges over time – meaning you will own your home sooner and can potentially refinance again! If so, it becomes an option once again.
Shorten Your Term
While rates are low now, they are not guaranteed to stay that way. Mortgage Refinance to a shorter term can give you more flexibility to take advantage of favourable conditions if they come around again. For example, your initial teaser rate may sound good if you have an adjustable-rate mortgage, but it is only guaranteed for two years. When it comes time to renew your loan, you could be looking at significantly higher interest rates—rates much higher than what you would get on a fixed-rate loan with similar terms. If interest rates rise precipitously (which can happen), refinance to lock in your initial deal before it is too late.
You may use some or your entire mortgage refinances proceeds to borrow money. It might be a good idea to use a portion of it to pay off high-interest credit card debt, personal loans, or other high-cost consumer debt. The lower interest rate from your new mortgage could help you save hundreds on interest over time. In addition, if you qualify for cash out from your lender, paying off old debts can free up some extra monthly cash flow that you may not have had before.