Is this the right time for you to refinance? 4 reasons that show, NOW is the time!

When looking for ways to save money, many homeowners turn to their mortgage. After all, for most people, a home loan is one of the largest investments and expenses incurred monthly. What many do not realize, is that refinancing your home can help you save a significant amount of money when timed correctly. Before we look at why now is the time to refinance, let’s first take a minute to understand the purpose of refinancing.

What Does It Mean to Refinance?

Refinancing your home means you trade in your current loan for a new loan with better conditions that will improve your financial state. You still only have one mortgage payment, as the old loan is paid off with the new one.

Advantages to Refinancing?

The purpose of refinancing is to put you in a better financial situation. This means the terms of the new loan should be better than the loan you currently have. Advantages to refinancing include:

  • Changing the type of the loan
  • Paying off a balloon payment
  • Shortening the loan term
  • Consolidating payments

Let’s take a look at 4 reasons why now is the time to refinance your home.

Lower Interest Rates

Interest rates are currently below the National average. If you currently hold a mortgage with an interest rate .500 higher than the National average, it is advantageous to possible lower your interest rate. A lower interest rate will reduce your monthly payments. This allows you to either put the extra money towards the remaining principal or use it for other bills.

Convert Your Loan Type

For homeowners who hold adjustable rate mortgages, there is a constant concern about rates increasing. While it is true that most of the time adjustable rate mortgages have starting rates that are lower than fixed-mortgage rates, it also holds true that these rates over time can end up being higher than fixed-rate mortgages. The unpredictability of not knowing when or how high rates will spike can be a constant source of stress. For homeowners in this situation, now is a good time to refinance your adjustable rate loan into a fixed-rate loan and eliminate the uncertainty.

Reduce Your Monthly Payment

Life happens to everyone. Unfortunately, you may incur financial hardships that make it difficult or even impossible to make your current payment. Missed payments can result in late fees, causing even more of a financial burden and even foreclosure. For homeowners who are facing hardship, refinancing can be a way to lengthen the term of your loan and therefore lower your monthly payment to a manageable amount. It might seem scary to lengthen the term of your loan. After all, you are trying to get out of debt and not prolong it. As long as your new loan does not have an early payoff penalty, you can pay extra on the principal once you get back on your feet.

Better Credit Score

If your credit score has significantly improved since you first secured your loan, it may be a good idea to consider refinancing. A better credit score can mean a lower interest rate. This will not only lower your monthly payment, but it can also significantly reduce the amount you pay for the life of the loan.

Your home is a large investment and it pays to be financially savvy. With years of experience as a trusted lender, I am here to help you with all of your refinancing needs. I, or one of my team members are happy to answer any questions you might have, advise you on the right approach to take, and then help you refinance with as little stress as possible.

If you’d like to learn more and talk about your options I’m a phone call, email or text message away. 

First-time buyers

Mortgage Calculator

Contact our office with any questions, concerns or ideas.  No Question is too small. 

Social Share

Kernel Security Check Failure How to Restart the Kernel in Windows 10

You’ll see this error when there’s a problem with the service key, or more than …

Read More

Raspberry Pi OS: Betriebssystem und Anwendungen aktualisieren

Außerdem benötigen Sie für die Installation Zeit und Ruhe, da es sich um ein neues …

Read More

Xiaomi Poco F4 vs Xiaomi Poco X3 Pro comparison

This file can be used for fix hang on logo and bricked device. Poco X3 …

Read More
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Search Local Homes for FREE Now!

Access 1000’s of homes in the local area and surrounding communities! Simply enter your search criteria below to get started now!
Step 1 of 17
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Get Your FREE Pre-Approval Letter

Do you know how much home you can afford? Take the first step by getting pre-approved here for FREE!
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 17
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Low Home Insurance Rates & Great Service

Get a FREE Quote in Just Seconds!
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!

Get Your FREE Refinance Analysis

Just answer the simple questions below to calculate a lower mortgage rate & payment. We make the process quick & easy.
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22

What's Your Home or Condo Worth?

Never trust home value estimates based solely on your home address! Get the REAL value of your home here in just 60 seconds or less!
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22
  • EastValleyMortgageBroker.com
  • Your “EastValley home loan search” is over!
Step 1 of 22