Three ways refinancing could benefit you.
Curious about the benefits of refinancing? If you’ve lived in your home for a few years, it may be worth reviewing your existing mortgage to see if a refinance could better serve your financial goals.
A good first step when you’re considering whether or not a refinance makes sense for you, is to review your overall financial plan. This will help you asses which type of refinance will best meet your needs. Here are a few examples of financial goals you may have and how refinancing can help you achieve them:
Paying for an immediate expenses. Do you have a planned or unplanned expense? Your home equity may provide a financing solution! A Cash-Out Refinance allows you to tap into the equity you’ve potentially established, simply by paying your mortgage each month, and turns that equity into a lump cash sum. The money can be used at your discretion making this refinance option a great choice if you have a big budget item planned, such as a home remodel or major home repairs.
Reducing your monthly expenses. If your goal is to reduce what you spend each month, refinancing to a lower interest rate may help. By refinancing to a lower interest rate, the amount you owe on your monthly mortgage payment could be reduced, saving you money each month. In addition, if you purchased your home with a down payment of less than 20% and you have a monthly Mortgage Insurance (MI) payment, refinancing could provide you with the option to remove MI* which could further reduce your monthly payment.
Saving money over time. Reducing the term of your mortgage and paying your loan off sooner has the potential to save you thousands of dollars over the life of your loan. While refinancing to a shorter term may increase your monthly payment, your interest rate will likely be lower and you’ll pay less interest over time. In addition, if you pay Mortgage Insurance as a part of your current mortgage payment, you may also be able to have it removed*, saving you even more money over the term of your loan.
If you have questions about how refinancing your mortgage could help you reach your financial goals, we’d love to connect you with one of our knowledgeable loan officers. They can answer your questions and provide you with a complementary review of your current mortgage to see if a refinance makes sense for you.
*1. Restrictions apply. Not applicable with all loan products. Ask for details.