Refinancing a Home Mortgage
To refinance or not to refinance? That’s the question. We can walk you through the options and help you determine the best answer for your needs.
Why should you refinance?
1. Save Money on Interest
Anyone who has ever gotten a mortgage loan will probably agree that one of the most nerve-wracking experiences in their life was watching mortgage interest rates ebb and flow as they gambled on when to lock in a rate on their loan. If the current interest rate is below the rate you’re paying on your mortgage, there may be an opportunity to save money.
2. Using Equity in Your Home
You may be able to free up cash as part of the home refinance process, provided you have enough equity in your home; this process operates much like a home equity loan. This can make good financial sense, because mortgage interest may be tax-deductible. The best part is that in times of declining mortgage rates, you may be able to keep your monthly mortgage payment the same as before you refinanced, even though you have borrowed some cash.
3. Change Your Loan Terms
A third reason to refinance is to get into another type of loan, for example, when a balloon mortgage comes due. Or you may simply want to pay off your mortgage earlier than you orginally thought. Extending or shortening your loan terms may make sense financially while also adjusting your payments to better fit your budget.