Understanding the benefits of mortgage refinancing affords homeowners like you the flexibility to access and manage your home equity and mortgage obligations. This knowledge can become a great tool to adjust and accommodate for life’s circumstances and changes.
A lower payment can leave you with extra, leftover income at the end of each month. This residual cash flow may be used towards savings or whatever else you may have planned. Here are common ways to accomplish a refinance:
Few first-time home buyers recognize their properties for the financial tools they can be. Consider dipping into your home’s equity (the amount of money you’ve already put into your home) to finance investments, unexpected circumstances, and anything else life throws your way. Some common reasons to cash out:
When you have a little extra money you’d like to put toward your mortgage payment, consider refinancing into a shorter loan term with a potentially lower interest rate instead of making the additional payment on the loan you already have. Refinancing into a shorter, monthly payment that accommodates the extra funds will ensure more of it goes toward the balance vs the interest.
If you have mortgage insurance, either because your loan to value was too high or you are currently in an FHA loan, you may be able to refinance out of it. Most likely, time has passed and you have paid down some of your initial loan. Because of this, you may also be able to take advantage of lower monthly payments and/or a better rate.
If the fixed period on your Adjustable Rate Mortgage (ARM) is about to run out, it might be time to refinance into a fixed rate mortgage with a stable interest rate, or into a new ARM (if the introductory rate will benefit you.)
Contact our team if any of the above aligns with your goals at our toll free number: 800-685-5576