Why should I refinance?
There are several reasons why homeowners consider refinancing their mortgage. The biggest reason is to save money on their monthly payment. You can do this by getting a lower interest rate or by eliminating your private mortgage insurance (PMI). Another reason to consider a mortgage refinance is to unlock some of the equity you have built into your home. You can use the money to pay off high-interest debt — like credit cards or personal loans — or invest it back into your home through remodeling projects.
Refinancing can also help you reduce the amount of time you will be paying your home loan. By shaving years off your mortgage, you can unlock more equity faster or walk away with more money if you decide to sell your home.
Who should refinance?
If you are looking to do the following:
1. Reduce your payment through lower interest: If your current interest rate is higher than today’s rates, you could save money through refinancing.
2.Reduce your payment by eliminating PMI
3. Take cash out from home equity: Are you considering remodeling your home or do you need to get out from under debt by, paying off high-interest credit cards?
4. Shorten your mortgage length: Converting from a 30-year mortgage to a 15-year home loan helps you build your equity faster, resulting in more options for your home. Converting to a fixed rate: While adjustable-rate mortgages (ARM) are great for the initial term of 3–5 years, the monthly payment can spike once it’s over.
