Refinancing Opportunities

What opportunities does refinancing your home mortgage provide? We’ve decided to highlight some of the best reasons to refinance.

Lower Interest Rates

The most common reason to refinance is to get a lower interest rate. If mortgage rates have lowered or your credit has improved, you may want to refinance to have less interest accrue over time.

Lower Monthly Payments

If your new mortgage has the same payoff date as your old mortgage and you refinance for a lower interest rate, your monthly payment may become lower too. A lower payment can also come from extending your payoff date which results in paying less in principle each month.

Pay Your Loan Off Sooner

If you started out with a 30-year loan and you’re refinancing to a 15-year loan, you can end up paying off the balance sooner. Not only are the interest rates on 15-year mortgages typically lower than a 30-year, but you may not have much more of a monthly payment and will save tons on interest.

Remove a Person from the Mortgage

If two people are on a mortgage together and one wishes to be free of the financial responsibility, refinancing can allow that. For example, if two people go through a divorce or a co-signer is no longer needed, refinancing can free the party of the responsibility.

Cancel Mortgage Insurance on the Loan

If you have paid off 20 percent of your loan and wish to get rid of Mortgage Insurance, refinancing is a good option. Also, FHA loans that require Mortgage Insurance throughout the life of the loan can be refinanced to another type of loan that the borrower may be able to apply for.

Before you make any decisions about refinancing, consult with a professional who will make sure you are making the best decision for your financial future.