Top 5 Benefits of a Refinance

There is an old adage for mortgages… if you can improve your interest rate by at least 1.5%, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance.

Lower your interest rate

Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out of pocket costs for housing and save money on financing fees.

Build equity faster

If you are in a position to make higher monthly payments due to an increase in salary or other good fortune; you may want to switch from a 30 year loan program into a 15 or 20 year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

Change your loan program

Some homeowners who start out in an Adjustable Rate Mortgage (ARM) or Balloon find that they would like to switch to the stability of a Fixed Rate mortgage at some point. This will provide stability and predictability in their finances.

Credit score has improved

If your credit score has improved, you may be in a position to take advantage of your improved credit standing. We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan.

Use the equity you have established – Cash Out

A cash out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

Consult an expert first

Regardless of your reasons for wanting to refinance, we will analyze the benefits and downfalls of your current and future loan in connection with your loan term goals.

Call me directly for a free consultation.