Refinancing means replacing your current mortgage with a new one that has different terms. This process can help you save money on your
monthly payment, pay off your loan faster, or access cash for important expenses. With a rate-and-term refinance you’ll focus on lowering your
interest rate, adjusting the length of your loan, or both.
Why Consider Refinancing?
There are several reasons to refinance your home loan:
1. Lower Your Monthly Payments: If you refinance to a lower interest
rate, your monthly payment can decrease. For example, if your current
rate is 4.5% and you refinance to 3.5%, you could save hundreds of
dollars each month!
2. Get Cash for Home Improvements: Want to remodel your kitchen or
add a bathroom? Refinancing can allow you to take out extra cash to
fund these upgrades, which can also increase your home’s value.
3. Consolidate Debt: If you have high-interest credit card debt,
refinancing can help you pay it off at a lower interest rate. For
instance, if you can consolidate a $10,000 credit card debt at 20%
interest into your mortgage at 3.5%, you could save a lot in interest.
4. Improve Your Credit Score: Lowering your credit card balances
by consolidating debt can help improve your credit score.
5. Cash for Major Expenses: Need cash for college tuition, a dream
vacation, or a new car? Refinancing can provide the funds you need.
6. Switch to a Fixed Rate: If you currently have an adjustable-rate
mortgage (ARM) and are worried about rising rates, refinancing
to a fixed-rate mortgage can provide peace of mind.
7. Decrease the Term of the Loan: Refinancing to a shorter loan term,
such as from a 30-year to a 15-year mortgage, can help you pay off
your home sooner and save on interest over the life of the loan. This is
a great option for those looking to eliminate their mortgage debt faster.
Get Help from Our Loan Officers
Navigating the refinancing process can be overwhelming, but you don’t have to do it alone! Contact us today, and we’ll connect you with an
experienced loan originator who will conduct a complimentary mortgage review to determine if refinancing is right for you.
