The Value of Refinancing
Making changes to your living and financial situations can be difficult. Money and housing decisions and changes can cause anxiety and stress. Additionally, your friends, family and mortgage lenders will all tell you different opinions about what you should do, making it almost impossible to make an unbiased decision. Your home is your castle, and you want to make sure that you are doing what is best for you and your family.
There are several different reasons why you might be considering a mortgage refinance. People refinance for several reasons, and it in no way is a sign of financial difficulty or danger. Typically a refinance is beneficial.
You might be interested in taking advantage of the lower mortgage interest rates that are available since the economic downturn several years ago. If you refinance your home, you can arrange a lower interest rate, which means your money will be used more towards the payment of your home’s principle, and not towards interest. Perhaps you have the ability to start paying more each month towards your loan principle. You may want to restructure your mortgage so that you can pay it off more quickly, which generally results in a lower annual interest rate. This will allow you to purchase your home free and clear more quickly and save money on interest payments at the same time.
People will often refinance their mortgage to consolidate debts or to help fund necessary home repairs. If you have are interested in remodeling or improving your home, you can refinance and withdraw the cash value of your home, above what is owed, to be put towards the cost of the repairs. Additionally, if times are tight, you can extend the term of your home loan so that you pay less each month. This generally leads to a raised interest rate on your mortgage, but will allow you to save money each month on your required payment.
If you are interested in a lower interest rate on your home loan or if you are curious to see what could potentially save, check your local mortgage refinance rates in your area and see if you could benefit from a mortgage refinance.
Guest post by Jessica Thorseon at MortgageRefinanceRates.orgwebsite translation