When mortgage rates are low, it could be a smart time to refinance your home. Before making your decision, come see us. We will sit down with you and provide the tools you need to make refinancing your home as successful and beneficial as possible for both you and your wallet.
There are several reasons you might want to refinance your home.
With a lower interest rate, you’ll not only lower your monthly payment, but you’ll also pay less over the life of your loan. This will free up funds to use for retirement, savings, paying off debt, or other financial goals.
If you refinance your home loan to a shorter-term mortgage, you could reduce the overall cost of interest and make fewer payments over the life of your loan. Depending upon your financial situation, it may make sense to pay a higher monthly payment, paying off your loan more quickly and allowing you to focus on other financial goals like saving for retirement.
Where it might have made sense to choose an Adjustable Rate Mortgage (ARM) when you first purchased your home, a Fixed-Rate Mortgage is a great option to lock in a new rate, especially if the market index has risen from the time of your original loan. With a Fixed Rate Mortgage, you get the benefit of stability and protection from rising interest rates and future payment increases. We offer a variety of Fixed Rate Mortgages and will always work to make sure you are comfortable with your new terms.
If you have an ARM, you may want to refinance to get a reduced interest rate, especially if you want to have the stability of an interest rate that won’t change over time. You can follow our rate watch to keep a close eye on current interest rates and receive an alert when they hit your targeted rate. A lower interest rate typically means lower monthly payments.
Refinancing your home can be a great solution to help you consolidate debt. With a lower rate than most credit cards and other loan options, refinancing your mortgage might be your ticket to consolidating your existing balances to one monthly payment and save you money over time.
If you’re considering refinancing, we recommend that you visit with a mortgage loan officer and your tax professional to see if refinancing to a shorter term loan makes sense for you. Check out our refi calculator to start crunching the numbers on what you could save in the long run and estimate your new monthly payment.