Are your mortgage rates higher than market interest rates? If so, mortgage refinancing could save you a lot of money.
Now Is the Time for Mortgage Refinancing
Interest rates are at historic lows right now. Even if you are already in a high-interest mortgage loan, the recent cuts in interest rates can still help you save money. If your mortgage rates are higher than market interest rates, you might want to consider mortgage refinancing. Mortgage refinancing can help you lock in a low, fixed rate for the life of your mortgage to protect you against fluctuations. Similarly, you could also switch to an adjustable-rate mortgage (ARM) to take advantage of rock-bottom initial interest rates. Whatever your financial goals, mortgage refinancing can help you meet them.
Mortgage Refinancing: What Is It & Why Consider It
The average home mortgage has a 30-year term, but it rarely makes sense to stick with the same loan for that period of time. In fact, did you know most Americans take advantage of mortgage refinancing every four years? Clearly, mortgage refinancing is so popular for a reasonit saves you money. Mortgage refinancing involves paying off your current mortgage by taking out a new one with different terms. There are many reasons why you might want to consider mortgage refinancing, including locking in a lower rate, switching to a fixed or adjustable rate mortgage, reducing your monthly payments, or increasing the equity in your home, to name a few.
Can Mortgage Refinancing Help You?
Mortgage refinancing is a great way to reduce payments, boost equity, and lower interest rates, but its not right for everyone. To determine if its right for you, youll first want to make sure the benefits exceed the costs. For example, take into account your prepayment penalty (if any) on your present mortgage. Also think about any tax savings youll be losing out on with mortgage refinancing. Finally, factor in how long you intend to be in your present home. If you intend on moving within the next few years, you might want to hold off on mortgage refinancing. Unless any of the aforementioned conditions apply to you, then mortgage refinancing may make a lot of sense for your situation.
Read on for more information on why mortgage refinancing is a good idea. We have even included a page to help you determine if mortgage refinancing is right for you. Finally, you can get the answers to the most commonly asked questions about mortgage refinancing on our FAQs page. Dont risk potential interest rate increasestake advantage of mortgage refinancing today!