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.