Whether you’re looking to save money on your current mortgage, want to reduce your monthly mortgage payments or perhaps convert some of your home equity into cash, a refinance loan may be a viable option for you. We have several refinance programs available that may help you achieve any of the aforementioned goals. Which refinance program is best suited for your situation depends on a variety of factors, such as your current interest rate, the type of mortgage you have and the market value of your home. We’ll outline some of the reasons why you might get a refinance loan.
When predicting whether or not refinancing is right for you, it’s a good idea to look through the mindset of refinancing off of today’s rates and not trying to predict future rates. As you build good credit over the course of your life, you’re able to obtain lower rates, saving you money on your monthly payments.
Many individuals and families find themselves carrying higher balances on credit cards, installment loans and other varying degrees of consumer debt, like personal loans, student or auto loans. Consolidating these obligations can lower your monthly payment significantly. The extra savings and tax benefits make the decision to pay off debt very cost effective. Imagine refinancing, combining five to eight bills into one payment and saving a couple hundred dollars every month!
It’s common for you to see something you want to update or fix in your home after a few years. This can include things like a larger deck, outdoor fire pit, new windows or updating the kitchen. Whatever you’re wanting to do, refinancing and utilizing your equity may be the right solution for you. Perhaps you don’t have the money saved up, or you don’t want to liquidate your savings. Leveraging your home's equity can be a great way to tackle some of those overdue home improvement projects.
If you have a mortgage, you’re probably looking for ways to pay it off faster. To facilitate this, you can refinance and reduce your existing 30-year mortgage to either a 20-, 15- or even a 10-year term. Refinancing and shortening your mortgage term can save you thousands in interest payments.
As with anything else involving lending, it’s important that you reach out to a qualified mortgage banker to walk you through the pros and cons of refinancing. Doing so ensures you know the costs and benefits associated with achieving your desired goal. Even in a rising interest rate environment, refinancing can bring stability to you and your family in numerous ways along your home loan journey.