When mortgage interest rates are very low, most mortgage experts agree that it would be an excellent time to refinance. But why should you? We’ve got the details on the advantages of refinancing your home.
Reduced interest rate. This is one of the main advantages of refinancing anything, especially a mortgage. As you age and your credit history becomes more robust, you may have a higher credit score and a higher income. For this reason, you may qualify for a much better interest rate than you did when you first bought your house!
Ability to take equity out of the home for other reasons. For example, some people refinance in order to afford a new car or pay off credit card debt using the equity in their home.
Shorter repayment period. If you refinance from a 30-year to a 15-year mortgage, for example, you’ll pay less in interest over time. However, there’s a possibility your monthly payments will be higher, so make sure you fully understand how this refinance will affect your day-to-day expenses!
Refinancing may not be the best option for you, however, so be sure to talk to one of our mortgage professionals to determine the best course of action. They’ll take good care of you!