“Refinancing” is a daunting topic for many people, but that shouldn’t be the case. For many homeowners, choosing to refinance can lower your monthly payments, help with your monthly budget, and save you thousands of dollars in the long run.
For years now, we’ve been hearing that interest rates will be on the rise, and although there have been some small increases, you’re still in a great position to drastically lower your interest rate. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.
Don’t brush off refinancing just because it seems like a long and overwhelming process. An informational call with a lender to see how rates compare will only take a few minutes. There are also some programs for streamlining the application process. The amount of money you could save by doing this is worth the time and effort.
Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.
Opting to refinance your home can lead to a number of benefits. A lower interest rate on your mortgage can lead to lower monthly payments, which means the extra savings can be used for home improvements to increase the value of your home. Contact us if you would like to explore your refinancing options! We are more than willing to walk you through the process and address any questions or concerns you may have.