Reasons to Refinance
Before making the decision to refinance, you should assess your reasons for doing so, and then consider the benefits and disadvantages of your mortgage options.
Lower your monthly payments
Refinancing your current mortgage to lower your monthly payment is one of the most common reasons to refinance. There are several different ways to lower your mortgage payments.
- You can refinance to a lower interest rate. Even a slight drop in the rate can save you a significant amount every month.
- Lengthening the term of your mortgage will also significantly lower your individual monthly payments./
- Other types of mortgage programs such as interest only, adjustable rate, and temporary buy-down mortgages could also lower your payments.
Consolidate High Interest Debt
Pay off all of your high interest credit card and other debt by using the equity in your home. This will lower your overall interest rate and payments. Also, you will only be paying one creditor instead of several, which will help improve your credit score.
Obtain cash from your home
The equity in your home can be used to finance home improvements, vacations, college tuition, and many other things that you may wish to purchase. This money can be obtained by refinancing or obtaining a home equity loan.
Change your loan type
Depending on your situation, it may be extremely beneficial for you to switch from an adjustable rate mortgage to a fixed rate mortgage. In other cases the opposite may be true.
Contact one of our refinance consultants, we will be glad to answer all of your refinancing questions. or Apply Now
