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Reduce Your Monthly Mortgage
Payment.
The slightest percentage drop can have a large effect when
calculated over 15 or 30 years, and so you definitely should
consider refinancing when you’re able to lock in a
lower interest rate. Switching from a 15 to 30-year term
will immediately reduce your mortgage payment. Conversely,
if you are looking to save money in the long run, you can
save thousands of dollars by refinancing from a 30-year to a
15-year mortgage. As most traditional mortgages include
principal and interest payments, still yet another way to
reduce your monthly mortgage payment is to switch to a
program with interest only payments. Refinancing your
existing mortgage is a surefire way to lower monthly
payments immediately.
Refinancing is Ideal for Putting
Money in Your Pocket.
Refinancing is perfect for cashing in on your home's
equity. For the most part, homeowners would have to sell
their homes in order to access the equity they have built.
However, a cash-out refinancing makes it possible to tap
into your home's equity, while remaining in your home.
Get Cash Quickly and Safely.
If you have equity, you can use the cash to finance. You
might pay for new home improvements, take a vacation, pay
off credit card debts (since credit card debt interest is
compounded whereas mortgage interest is relatively simple
and tax deductible, this is an especially attractive
option), or pay for your child’s education.
Switch your mortgage program to
fit your financial situation better.
An adjustable rate mortgage (ARM) is a particularly
attractive option for homeowners who do not plan to stay in
their home for an extended time period. An ARM could lower
your monthly payment dramatically when compared to a 30-year
fixed-rate mortgage. On the other hand, if you do plan on
staying longer than a 3-5 year period in your home, you
might want to switch to a 15, 20, or 30-year fixed-rate home
loan. Doing so will provide stability over time, and protect
you against market fluctuations. Fix program can help you
save the most in cost in the life of the loan. Speak to out
Mortgage Advisor for further details.
Get Rid of Private Mortgage
Insurance.
Private Mortgage Insurance (PMI) is designed to secure the
lender from the borrower defaulting on his/her loan. Often
in mortgage loans, especially in low (less than 20%) down
payment purchases, PMI is required. Over time, as you
demonstrate your ability to make payments on time, and as
your home appreciates in value, you may be eligible to
refinance your home without paying for PMI.
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Equal Housing
Opportunity