Refinancing is the process of getting a new mortgage to replace your old one, and it’s more common than you think. Although saving money is generally the primary motivation for refinancing your home, there are many other good reasons to refinance as well. If you’re wondering if refinancing your mortgage is right for you, consider these 5 benefits:
5 Reasons to
- You could lower your interest rate. Have you improved your credit score or gotten a raise at work? You may be eligible for a lower interest rate, which could mean lower monthly mortgage payments.
- You could remove your mortgage insurance. Most home values have increased over the last few years, which could make you a great candidate for removing your private mortgage insurance and saving money each month.
- You could get extra cash. If you’ve always wanted to renovate your home or go back to college, a cash-out refinance could be a great opportunity. Why not use the equity you already have in your home to follow your dreams?
- You could reduce your loan term. Do you think you might be able to pay off your loan more quickly than you anticipated? Reducing your term could save you a significant amount of interest over the life of your loan.
- You could consolidate your debt. If you have high-interest credit cards or other debts you’ve been hoping to pay off, tapping into your home’s equity via refinancing is an easy way to consolidate your debt.
Even if you’ve been satisfied with your current mortgage, don’t rule out refinancing. There are plenty of reasons to refinance, and doing so is a great way to help you reach your financial goals – regardless of what they are.
To learn more about what refinancing option is right for you, contact one of our Loan Officers today.