Why consider refinancing your mortgage?
Lowering your interest rate can save you money!
A lower interest rate can reduce your monthly payment, which means more money in your pocket at the end of the day. What could you do with more cash?
Pay off other debt, fund your emergency savings, or start new projects
As you make payments on your mortgage, you’re also building up equity in your home. A cash out refinance uses that equity and allows you to borrow against it and get cash that you can use for things such as paying down other debt (i.e. – high-interest credit cards, medical bills, etc.), stashing away for emergencies, or even things like remodeling your home.
Take control over how long it’ll take to pay off your home
Refinancing to a shorter-term mortgage means even lower rates and savings over the life of your loan while also building equity in your home quicker. A 15-year mortgage compared to a 30-year mortgage, however, will likely require a higher monthly payment.
Take advantage of an improved credit score
If your credit score today is significantly higher than when you initially took out your mortgage you may qualify for a better rate.
Be flexible by going adjustable
Everyone’s different and that doubly applies to life situations. If you’re looking for lower initial payments and saving money in the short-term, an Adjustable Rate Mortgage (ARM) might be just what you need. For long-term consideration, however, you may want to go with a fixed rate loan and the security that comes with knowing your rate and payment will not change for the life of the loan.