LOWER YOUR MORTGAGE PAYMENTS

Refinancing a home mortgage is not an easy decision to make for many homeowners. It involves paying off whatever remains of the previous existing loan and then replacing it with a new one. There are many things to consider when you do want to get refinanced. However, refinancing is an easy way to solve some of the worries with a mortgage. It allows you to get a lower monthly rate, which makes sense as you’ll have to pay less over time. It can also present some other financial opportunities in the future.

A lower monthly mortgage payment can help free-up money so you can save, invest or use for other expenses. When rates are favorable, refinancing to a lower rate or longer-term mortgage can keep more money in your pocket every month.

Pay a lower interest rate on your loan. If interest rates have dropped since you took out your loan, you can enjoy the current market rates.

Alternately, you can switch to a shorter loan term if you want to finish paying off on your loan sooner.

Having a hard time paying your regular bills? Switch to a longer loan term for smaller monthly payments. This may give you the extra room in your budget that you need to live more comfortably.

Convert from an adjustable rate mortgage (ARM) to a fixed rate mortgage, or vice versa. An ARM may save you money in the short-term, while a fixed rate mortgage in the long-term.

Consolidate your debts. If keeping up with your debts has turned into a struggle, you may be able to alleviate some of the challenges you are facing through refinancing. You could save money and cut back on stress by paying off debt using the equity in your home.

Enjoy friendlier terms governing your loan. You may qualify now for a loan today which offers more flexibility than the one which you originally took out.

How much does refinancing cost?

The closing cost of refinancing a mortgage is between 1% and 2% of the total amount of the loan. This also includes lender fees. You can pay this cost upfront with cash or pay with points.

Points or discount points allow borrowers to lower the interest they’ll get on the refinancing loan. You can pay 1% of the total loan amount upfront and lower the rate by 1/8%.

Is an excellent credit score necessary for refinancing ?

Not necessarily. It’s true that a good credit score makes it easier to get a better interest rate. Having a less than perfect credit score can be considered. However, you will have to lower the interest rate to make the refinance worth it.

LOWER YOUR MORTGAGE PAYMENTS

Reasons to Refinance Your Home

How much does refinancing cost?

Is an excellent credit score necessary for refinancing ?

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