There are many reasons that make sense to refinance your mortgage. It’s important to have a clear financial objective in mind so that you’re better suited to choose the most appropriate loan. Our primary objective is to understand your goals and help you choose the loan that will best achieve those goals. Ultimately, the decision is up to you, based on your individual financial situation.
Lower Your Monthly Payment
A drop of just one half to three quarters of a percentage point in interest can lower your monthly payment, but there are more than a few different ways you can lower your monthly mortgage payment.
The most common way to lower your payment is to simply refinance to a lower interest rate. A lower rate generally means a lower monthly payment.
You can also change the term of your mortgage. For instance, if you have a 15-year mortgage, you can lengthen the term to 30 years. Since the balance of your mortgage is spread out over a longer period of time, your payment will be lower.
There are many ways to structure your mortgage to acheive your financial goals. If you would like to get an idea of your potential savings try out our payment estimator.
Change Your Loan Program
Another good reason to refinance is to change your loan program. If you started out with an Adjustable Rate Mortgage (ARM) you may want to switch to a Fixed Rate Mortgage or vice-versa. There are reasons for each loan program and we would be happy to help you narrow down and decide on the best option for you.
- Switch Between Adjustable & Fixed Rates
- Escape Balloon Payments
- Shorten or Lengthen Your Loan Term
Consolidate High-Interest Credit Card Debt
The national average credit card rate is around 15%– significantly higher than mortgae rates. Consolidating your credit cards and other debts into your mortgage can free up your monthly cash flow by reducing the number of bills you have to pay and save you thousands in interest over the long-run. This is not always the best option depending on your goals, but we can help you make an informed descision.
Get Cash from Your Home
There are many reasons why you may want to take out cash from your home, especially during these economic times. As you will see the reasons to get a lump sum of money are endless, but a few of the most common uses are listed below:
- Home Improvement Projects
- Payoff Judgements, Credit Cards & Other Debts
- Go Back to School
- Take a Vacation