TOP 5 REASONS TO REFINANCE YOUR HOME
- Refinance to get a lower interest rate – A a lower interest rate on your mortgage means a lower payment. Just lowering it .5% can mean hundreds of dollars a month for some people. For example, a $350,000 mortgage going from 6% to 5.5% will see an average payment drop from $2,147 to $2,026. That is over $120.00 per month, and almost $1500.00 per year. That’s money people can keep for themselves. The important thing to consider when refinancing into a lower rate, is if you are waiting for rates to drop even lower, which there is no guarantee, you are paying your Lender more each month that you need to and could be saving the extra Money.
- Refinance out of an ARM – If you have an ARM or (adjustable Rate Mortgage), refinancing into a FIXED RATE Mortgage is a smart move with rising interest rates. It gives your Mortgage Payment Stability in an uncertain market. Many people use ARMs for various reasons when purchasing a home, rates are generally lower to start, then adjust after 3, 5, 7 or 10 years. Giving more money to purchase other necessary items for the home like furniture and appliances. Refinancing when the ARM adjusts is usually the reason as today’s rates are adjusting higher than in previous years.
- Refinance to pay off debt and improve credit – Many homeowners today are refinancing their homes to payoff high interest credit cards and consolidate debt. This will help improve your credit score over time and will allow you to pay off debt quicker. The faster debt is paid down, the less debt you have and the higher your credit score will rise. The higher the credit score, the better interest rates you can qualify for. This is one of the great benefits of refinancing a home mortgage to pay off debt.
- CASH-OUT Refinance – Many people borrower money for other reasons, some of these are as follows: to buy Investment Property, remodel your home, room additions or pay for College Tuition. If you want to borrow money and have the proper amount of home equity built up, borrowing money via a cash-out refinance is still one of the most popular reasons to refinance. Using your home’s equity, you can borrow money at a much lower rate than credit cards or even equity lines.
- Refinancing Real Estate Investments – Real Estate Investors are taking advantage of the low interest rates to refinance Investment Property. Taking Cash-out of current Investments and purchasing more property is also popular strategy.
Whatever the reason, refinancing a home mortgage may be a good idea
Whether or not you take advantage of historically low mortgage rates on 30-year fixed-rate mortgages or take advantage of the best buyer’s market in a generation is up to you. The reasons to do so are clear and simple. If you’re not sure if you should or can take advantage of current markets, you should talk to a mortgage professional. Don’t wait and miss out on a great opportunity!
If you are interested in Refinancing your home, or need to get a quote, click here