7 reasons to consider refinancing your home!

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Real Estate

Interest rates are near the lowest in 3 years!* 

7 reasons to consider taking advantage of the low rates by refinancing your home!

Refinancing may enable you to take advantage of one or more of the following benefits:

1. Lower your interest rate. 

A lower rate than what you’re now paying will decrease your monthly mortgage payment and reduce the amount of interest you’re paying.

2. Use your mortgage to get cash. 

If you refinance for an amount greater than what you owe on your home, you can receive the difference in cash, to be used as you wish.

3. Build equity in your home quicker. 

With lower monthly payments, you may be able to make additional payments and build equity in your home more quickly.

4. Roll closing costs and fees into your new loan. 

If you’ve had your current mortgage for at least three years, you may be able to include your closing costs in your new loan and still end up with a mortgage that’s smaller than your original loan—with a lower interest rate or lower monthly payment.

5. Remove the cost for mortgage insurance (MI). 

If you’ve reached 20% equity in your home and have an FHA loan, you may be able to refinance to a Conventional loan and remove the MI cost.

6. Convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. 

Interest rates and monthly mortgage payments for an ARM can increase or decrease based on market conditions. So many people prefer to switch from an ARM to a fixed-rate mortgage that has a steady interest rate and steady month payment, which is easier to plan for and budget. But even if you decide to stick with an ARM, you may be able to refinance and get one with better terms.

7. Combine two mortgages into one. 

If you have both a primary and a secondary mortgage, you could refinance both by paying them off and replacing them with one new mortgage.

*Source: HousingWire, July 3, 2019