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.
Every scenario has varying goals, outcomes and benefits. Below are a few scenarios in which you might consider refinancing.
When predicting whether or not refinancing is right for you, it’s beneficial to plant yourself in the mindset of refinancing off of today’s rates and not the prediction of future rates. As you see yourself moving through your career, potentially making and saving more money, and paying bills on time, you find your credit score increasing. With an increase in credit, you’re able to obtain loans at a lower rate, thus, having a money-saving effect 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 (i.e. personal loans, student loans, auto, etc.). Oftentimes, 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, consolidating five to eight bills into one payment, and saving a couple hundred dollars every month!
Sometimes, we notice families want to fix and/or update something with regards to their home. This can include things like a larger deck, outdoor fire pit, new windows, updating the kitchen, or a bathroom. Whatever the reason, 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 or 401K. In those instances, leveraging your home's equity may be beneficial to tackle some of those overdue home improvement projects.
You may be interested in how to pay off your existing mortgage faster. In order to facilitate this, you may 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 benefits, but also the costs associated with achieving the desired goal. Even in a rising interest rate environment, refinancing can bring stability to you and your family in numerous ways along the home loan journey.