If you are struggling to pay your mortgage every month or trying to save some money, you’ve probably been searching for solutions. Refinancing your mortgage is a great option and you may have even considered it already. There are plenty of reasons to refinance your home loan. Here are our recommendations are below.
Reasons to Refinance
Lower Your Interest Rate
This is going to be the reason that makes the most sense and shouldn’t require much deliberation. If you haven’t checked lately, see what the current interest rates are. They could very well be lower than what your rate currently is. Home loans are typically pretty substantial which means a lower interest rate could have more of an impact on your monthly payments than you think.
Home Renovations or Repairs
There could be some areas in your home that you would like to renovate. Or maybe there are some repairs that you keep thinking about but never have the extra money? Say goodbye to waiting any longer. You can use the equity built up in your home to take care of repairs or renovations. Up to 80% of your home’s value is available if you would like to borrow it.
Solidify Your Interest Rate
Many borrowers initially apply for an adjustable rate mortgage. The initial term had a low fixed rate for a certain amount of time but time is up. Or it’s close. Instead of dealing with an ever-increasing rate, refinancing into a fixed rate mortgage may be your best option. Having a constant interest rate can help with things like budgeting and could very well save you money in the long run.
You’re Thinking About the Long Term
You initially signed up for a 30 year fixed rate mortgage. That may have been the option that made the most sense at the time. Now you have a better position at your company. Or you’re at a new company entirely with a better salary. Whatever the case may be, saving money over the long-haul is important to you and you’re able to afford a larger payment right now. This is the perfect situation for refinancing into a shorter term loan will result in a lower interest rate.
How Much Could You Save?
All of this sounds pretty great but what do the actual numbers look like? We have just the tool you can use to find out. Check out our Refinance Calculator. Simply punch in your numbers and the calculator will show you how much you could save by refinancing. Don’t let the unknown keep you from saving!