Have you heard about other people refinancing their mortgage and/or other loans, but not sure if it's right for you? There are many different reasons why you may choose to refinance your existing loans.
Refinancing can help with:
- Lowering the interest rate on your mortgage or other loan(s)
- Changing the term of your loan
- Consolidating other existing debt into one larger loan
- Receiving funds to pay for other life expenses
Beyond the potential benefit of a lower interest rate, refinancing an existing loan may also allow the borrower to take cash out to pay for miscellaneous expenses such as home improvements, college tuition, purchasing a second home, and more. (A Home Equity Line of Credit may also be a good option for this.)
When refinancing your mortgage loan, you may also consolidate debt by refinancing other loans you may have into one larger loan at a potentially more comptetitive interest rate for a longer period of time (15-30 years). If your other loans have shorter terms than your mortgage, this would typically result in lowering your total monthly bill payments and leave you with one convenient monthly payment.
There are minimal restrictions as to when you can refinance a loan (depending on the type of loan), so if you're thinking about refinancing, keep an eye on the current mortgage rates – you'll want them to be lower than your existing mortgage rate! – and don't be afraid to have a conversation about refinancing with one of our experts. You may be surprised at what refinancing can do for you!
To see if refinancing is right for you, please contact one of our Mortgage Lenders.