When interest rates fall or you have a change in your financial situation, you may consider refinancing. Refinancing actually replaces your current mortgage with a brand new loan, so expect a process similar to what you experienced when you got your original mortgage. Refinancing is a choice that can help you in many ways:
- Taking advantage of lower interest rates to reduce your monthly payments and reduce your interest cost for the life of your mortgage. If interest rates are 1/2% to 5/8% lower than your current rate, consider refinancing.
- Shortening your loan term to reduce interest cost for the life of your mortgage.
- Shortening your loan term to pay off your mortgage faster and build up equity faster.
- Extending the loan term to reduce your monthly payments.
- Switching from an adjustable-rate loan or balloon mortgage to a fixed-rate loan, to reduce your interest rate risk
- Freeing up cash for major expenses.
- Debt consolidation.
Don’t make your decision based on just one option that makes it tempting. Think about:
- How will refinancing help you reach your financial goals?
- How long will you stay in your home?
- How will you use your equity?
- Always keep the big picture in mind.
Here are some Remarkable Resources to help you with your refinancing decision:
- The a-z of service providers
- Appraisal value
- Ask your lender
- Capital gains in real estate
- Closing cost
- Closing documents to keep
- Forms
- Hiring a contractor for your remodeling project
- How big a mortgage can I afford?
- How could we lower the cost of homeowners insurance
- Improving your credit
- Internet resources
- The lender will need from you and all parties signing the loan
- Loan choices and affect
- Remodeling may bring a good return for the investment
- Shaping up your finances
- What really affects my credit score
- Your basic budget worksheet
I would love to introduce you to a loan specialist that you can trust who can help you determine what is best for your situation. Give me a call at 303-748-3838 or visit my contact page and we can talk about your options.
