Refinance Your Mortgage
Top reasons to refinance your mortgage:
Monthly living costs always seem to be increasing, so it could be a big financial relief to reduce the monthly burden. The following are a couple of ways that mortgage refinancing may help you breathe a little easier every month:
“Cash out” is a way of using the equity in your home to access money. Cash out refinancing allows you to take out a new mortgage based on the appreciated value of your home. Your home is used to secure the loan. This allows you to receive the value that was tied up in your home as actual cash. The cash can then be used for just about any need you have, including college tuition, home improvements, or a new car.
One Manageable Rate and Statement
Credit card debts can mount quickly with high interest rates. If you carry a balance from month to month, then the interest is compounded, dragging you deeper into debt. Even if you're paying the minimum amount due every month, on time, you may not be making a dent on credit card debt. In fact, because credit card companies require such minimal payments, if you can only pay the minimum amount due each month, you may be falling even deeper into debt. You can potentially save thousands of dollars in interest by debt consolidation through refinancing. Mortgage refinancing is a very effective means of debt consolidation, and you will only have to keep track of one statement instead of several bills. Also, in most cases, the interest is tax-deductible. Please check with your tax adviser.
ARM or a Fixed Rate?
The best mortgage rate depends on your personal plans for the future. In the short term, an ARM could be the best way to save money. “Short term” for a mortgage is considered to be about five to ten years. If you intend to own your property for the long term, then you could benefit in interest savings by locking in a fixed rate mortgage over a 30-year term.
Of course, you will want to speak with a professional before refinancing your mortgage. If you ask lots of questions as you research mortgage refinancing, you could enjoy a better financial position for years to come. Be sure to obtain mortgage loan quotes from multiple lenders. You are likely to get a better offer when lenders know they are competing with other lenders for your business.