Mortgage Refinance Benefits
Here are several reasons to refinance your home loan!
Lowering your monthly home loan mortgage payment
An average homeowner may save over $100 per month with a mortgage refinance. With a lower monthly mortgage payment you are able to save more or apply that savings towards your monthly mortgage payment and pay off your loan sooner.
Remove private mortgage insurance
Some homeowners who have enough property appreciation or principal paid off will not be required to pay mortgage insurance which will reduce your total monthly payment.
Reducing the length of your loan
For homeowners who took out a home loan mortgage in the early stages of their career, a 30-year mortgage may have made the most financial sense. But for those who want to pay off their mortgage sooner, reducing the loan term can be an attractive option.
Switching an adjustable-rate mortgage to a fixed-rate loan
When you have an adjustable-rate mortgage, your payment can adjust up or down as interest rates change. Switching to a fixed-rate loan with stable monthly payments can give homeowners the security of knowing that their payment will never change.
Consolidating your first mortgage and high interest debts
By rolling these into a single monthly payment, you can simplify your finances and focus on one low interest payment. Refinancing high interest debts into a fixed-rate loan could potentially save you money in the long run.
Using the equity to take out cash
With rising home values, you may have enough equity to take out a cash-out refinance. This money can be used to finance home improvements, pay off debts or to fund large purchases.
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