REFINANCING HAS ITS PERKS
Refinancing helps you take advantage of low-interest rates and to shorten the terms of existing loans.
Refinancing could save tens of thousands of dollars in interest and years of mortgage debt repayment. However, it does take some effort to get the process started. But, the time and effort spent could easily be worth it depending on your situation.
Reasons you may want to refinance
SHORTEN LOAN TERM
You can build equity faster, or pay off your mortgage in less time, by refinancing to a shorter loan term which may result in a slightly higher monthly payment. However, you may also save money by paying less toward interest.
LOWER YOUR INTEREST RATE
You could literally save tens of thousands of dollars just by taking the time to fill out the necessary paperwork and gather the needed documents. Refinancing with a lower interest rate could result in lower mortgage payments. This may provide extra money each month for homeowners to save, or spend, however they choose.
LOWER YOUR PAYMENT
Refinancing your mortgage at a lower interest rate could mean drastically reducing your payment and saving tens of thousands of dollars in interest. Lowering your mortgage payment could also free up hundreds of dollars per month that could be saved or invested. Although refinancing to lower your payment could increase the term of your loan, it could make sense in your situation.
CASH OUT HOME EQUITY
It’s a tempting proposition to cash out your home equity by refinancing your home. It could even be a great financial move in some circumstances.
*Consult a tax professional for more information.