5 Great Reasons to Refinance
There are many great reasons to
refinance. With lower cost, adjustable rate, and 0-down
options, traditional loan programs like 30-year or 15-year
fixed rate mortgages don't always allow us to meet our
financial goals. Today, even reducing your mortgage interest
rate a little can save you big over the life of your home
loan. Take a look below at 5 great reasons to refinance.
Need lower monthly payments?
Extra cash? A fixed
mortgage rate?
Refinance now!
|
Home Loan Center can help!  |
|
|
1. Lower Your Monthly
Payment
If you plan to
live in your home for a few years, it may make sense to pay a
point or two to decrease your interest rate and overall
payment. Over the long run, you will have paid for the cost of
the mortgage refinance with the monthly savings. On the other
hand, if you plan on moving in the near future, you may not be
in your home long enough to recover the refinancing costs.
Calculating the break-even point before you decide to
refinance can help determine whether it makes sense. Apply Now
2. Switch From an Adjustable Rate to a Fixed Rate Mortgage
Adjustable rate mortgages (ARMs) can
provide lower initial monthly payments for those who are
willing to risk upward market adjustments. They're also ideal
if you don't plan to own your property for more than a few
years. However, if you have made your house a permanent home,
you may want to swap your adjustable rate for a 15-, 20- or
30-year fixed rate mortgage. Your interest may be higher than
with an ARM, but you have the confidence of knowing what your
payment will be every month for the rest of your loan term. Apply
Now
3. Escape Balloon Payment Programs
Like adjustable rate
mortgage programs, balloon programs are great when you want
lower rates and lower initial monthly payments. However, if
you still own the property at the end of the fixed rate term
(usually 5 or 7 years), the entire balance of your mortgage is
due to the lender. If you are in a balloon program, you can
easily switch over into a new adjustable rate mortgage or
fixed rate mortgage. Apply Now
4. Remove Private Mortgage Insurance (PMI)
Zero or Low down
payment options allow homeowners to purchase homes with less
than 20% down. Unfortunately, they also usually require
private mortgage insurance, which is designed to protect the
lender from loan default. As the value of your home increases
and the balance on your home decreases, you may be eligible to
remove your PMI with a mortgage refinance loan. Apply Now
5. Cash In on Your Home's Equity
Your home is a great
resource for extra cash. Like most homes, yours has probably
increased in value and that gives you the ability to take
some of that cash and put it to good use. Pay off credit
cards, make home improvements, pay tuition, replace your
current car, or even take a long-overdue vacation. With a
cash-out mortgage refinance transaction, it's easy. And it's
even tax deductible. Learn More About Mortgage
Refinancing |
Home 
Sitemap 
Contact 
Refinance
Help Center
