5 Benefits of Refinancing
Published On October 28, 2020
Are you wondering if you might be able to benefit from refinancing your mortgage? Here are 5 benefits of refinancing that could help you:
Lower monthly payment
When thinking about refinancing, the first benefit that might come mind is lower monthly payments. Lower monthly payments would free up money that you could use towards other things. You might be able to get lower monthly payments if 1) you are able to refinance to a lower interest rate than what you have on your current mortgage or 2) if you lengthen your loan term, to pay off your loan more gradually.
Lower interest rate
We all like saving money, and when it comes to a large investment such as your home, the more money you can save the better. If you are able to get an interest rate that is significantly lower than the rate you currently have, it can amount to a significant savings over the long run. A single percentage decrease in rates can result in lower monthly payments, making a noticeable impact on your wallet.
Free up cash by collecting equity from your home
Do you need to free up some cash to cover other expenses? With a cash-out refinance, you can dip into the equity you’ve built in your home to borrow money at a low cost. That money can be used to cover unexpected expenses, such as medical costs, or can be reinvested back into your home to make improvements that will increase the value of the home.
Save money by shortening your loan term
If you are looking to pay off your home faster, saving you money in the long run, refinancing could be help you do this. By refinancing your home to a shorter loan term, you can build up equity faster, which will ultimately result in you saving money on interest.
Create stability by changing to a fixed rate
If you currently have a variable rate and are looking for a more predictable monthly loan payment, you might want to consider a fixed rate. Switching from a variable rate to a fixed rate will stabilize your month to month loan payment.
If you’d like to learn more about the benefits of refinancing and our refinancing options, our team of loan experts is happy to talk it through with you.
BluPrint Home Loans is a Division of NFM, Inc. dba NFM Lending, NFM NMLS #2893. NFM is an Equal Housing Lender. Some products and services may not be available in all states. Licensing and disclosure information can be found at https://nfmlending.com/licensing/
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© 2025 NFM Lending, LLC dba BluPrint Home Loans. America’s Common Sense Lender® Trade/service marks are the property of NFM Lending. www.nfmlending.com. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.
Equal housing lender. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Qualifying credit score needed for conventional loans. LTV’s can be as high as 96.5% for FHA loans. FHA minimum FICO score required. Fixed rate loans only. W2 transcript option not permitted. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. For USDA loans, 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Loan is limited to the appraised value without the pool, if applicable. The pre-approval may be issued before or after a home is found. A pre-approval is an initial verification that the buyer has the income and assets to afford a home up to a certain amount. This means we have pulled credit, collected documents, verified assets, submitted the file to processing and underwriting, ordered verification of rent and employment, completed an analysis of credit, debt ratio and assets, and issued the pre-approval. The pre-approval is contingent upon no changes to financials and property approval/appraisal. For Arizona originators: AZ# BK-0934973. In Alaska, business will only be conducted under NFM Lending and not any of our affiliate sites.
Equal housing lender. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Qualifying credit score needed for conventional loans. LTV’s can be as high as 96.5% for FHA loans. FHA minimum FICO score required. Fixed rate loans only. W2 transcript option not permitted. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. For USDA loans, 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Loan is limited to the appraised value without the pool, if applicable. The pre-approval may be issued before or after a home is found. A pre-approval is an initial verification that the buyer has the income and assets to afford a home up to a certain amount. This means we have pulled credit, collected documents, verified assets, submitted the file to processing and underwriting, ordered verification of rent and employment, completed an analysis of credit, debt ratio and assets, and issued the pre-approval. The pre-approval is contingent upon no changes to financials and property approval/appraisal. For Arizona originators: AZ# BK-0934973. In Alaska, business will only be conducted under NFM Lending and not any of our affiliate sites.