Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. While there are many good reasons to refinance, here are three common ones.
Scoring a lower interest rate.
The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
Adjustable to Fixed Rate.
If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
Cashing out home equity.
If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.
Have a question about the information presented here? Leave your comment or question in the comment section below. Alternatively, you may contact me directly via phone at (956) 203 - 0314, via email at carlomstz73@gmail.com, or via this contact form.
Scoring a lower interest rate.
The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
Adjustable to Fixed Rate.
If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
Cashing out home equity.
If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.
Have a question about the information presented here? Leave your comment or question in the comment section below. Alternatively, you may contact me directly via phone at (956) 203 - 0314, via email at carlomstz73@gmail.com, or via this contact form.