September 21st, 2018
Homeownership is, for millions of people, a true part of the American dream. Buying one of the many homes for sale is something that thousands will consider doing this year. The market is strong, with a lot of variety in terms of what homes are available. And, best of all, today's mortgages are more affordable and beneficial than ever before.
But what about those who already have a home and a mortgage? For these individuals, taking the time to go through the process of refinancing a mortgage may be well worth doing.
Refinancing is just what it sounds like - taking out a new loan to replace your existing one. Essentially, your refinanced loan will pay off the principle owed on your current one and become the new loan that you pay on a monthly basis. Already, Americans have a total of $9.9 trillion in mortgage debt, and a refinance could be one of the best ways to ease the burden of a mortgage.
Top Reasons To Consider Refinancing Your Mortgage
Interestingly, mortgage refinances have fallen to their lowest point in 10 years recently. This is due largely to rising interest rates, but the fact remains that for many, refinancing could offer very real benefits that are worth considering. If you're unsure of whether or not you should refinance your home, looking at some of these benefits may help you make up your mind.
Lower Interest Rates
Despite the fact that interest rates have increased a small bit over the last year, refinancing could help you secure an interest rate much lower than you currently have. Even landing a rate that is 1% lower than your current one could help cut your monthly mortgage bill by a large margin and give you more extra cash in your wallet.
Changing from a 30 year loan to a 15 or 20 year loan structure could make it easier to build up equity in your home and save a large amount of money over the course of the loan.
Use Your Equity
If you already have built up equity, you can refinance to take advantage of that equity. Whether it's paying off credit card accounts or sending a child to college, refinancing could make it easier to pay off your bills by giving you a large influx of cash.
Credit Score Changes
If your credit score has changed dramatically, you may be able to secure a totally different loan with better terms. This can include interest rates, monthly fees, terms, and more.
Change Your Program
If you began your mortgage with an Adjustable Rate Mortgage, or ARM for short, you can use the refinance to secure a more stable fixed rate mortgage. This is excellent for those who aren't selling their home but prefer to remain in it since it gives them better stability.
If you're ready to refinance your home, local help is here to help make it happen. Contact a mortgage expert today.