5 Reasons to Refinance a Mortgage
on Monday, April 26, 2021
Mortgage rates recently reached their lowest level in years. That means if you haven't yet refinanced your home, you still have time. Here are five good reasons to refinance:
- Lower your monthly payments. Refinancing to a lower rate could not only help you reduce your monthly payment, but also save you thousands of dollars over the life of your loan.
- Shorten the term of your mortgage. With rates so low, you may be able to trim years off your mortgage without adding to your monthly payment. For example, by refinancing a 30-year mortgage to a 20- or 15-year term, you will not only own your home sooner, but also save thousands of dollars in interest.
- Reduce or eliminate private mortgage insurance (PMI). If you put less than 20% down on your home when you got your mortgage, you have to pay private mortgage insurance. If your home's value has increased, you may be able to refinance your mortgage to reduce or eliminate PMI, thereby lowering your monthly payment.
- Switch from an adjustable-rate mortgage (ARM). If you have an ARM and plan to live in your home for many years, you could refinance to a fixed-rate mortgage. Unlike ARMs, which are subject to periodic rate adjustments, fixed-rate mortgages offer the security of fixed monthly payments for the life of your loan.
- Get cash out. Life is full of expenses – from home repairs to medical bills to student loans. If you have equity in your home, you may be able to refinance and take out the money you need to make home improvements, consolidate debt, or finance other life expenses.
Talk to us; we're here for you.
The decision to refinance is based on many factors, including your unique financial needs and the equity you have in your home. To learn if refinancing will work for you, talk to one of our knowledgeable loan officers today.