Eight Reasons to Refinance your Mortgage
Since there seems to be a trend of rising interest rates, you may be wondering if you should refinance your home mortgage. There are several reasons why this might make a lot of sense. Here are a few:
- If your current jumbo loan or the combination of your first and second loans are $424,100 or less, you can refinance into a regular conventional loan. The conforming loan limit was increased a few months ago to $424,100.
- If you have a VA home loan you can refinance without an appraisal. The VA home loan interest rates are still very attractive.
- If you are a Veteran and your current loan is not a VA home loan, you most likely will be able to refinance at a lower interest rate.
- If your current loan is FHA you may want to consider checking to see if you have enough equity in your home to refinance and eliminate the monthly private mortgage insurance.
- If you want to pay off your loan in a shorter amount of years, you could refinance into a 15 year term loan.
- If you need to reduce your total monthly debt you could do a cash-out refinance and pay off other debts.
- If your current loan is an Adjustable Rate Mortgage (ARM) you should refinance into a fixed rate before rates rise too much. This is of course if you don’t intend to move in the next few years.
- If you would like to remodel or add on to your home you could take a cash-out refinance to pay for the improvements.
Article written by: JoAnn Moore, Licensed Mortgage Originator, NMLS #165477, The Mortgage Market of Delaware, LLC, Georgetown, Delaware 19947. Office 302.855.1306, Cell 302.236.1229, MMODJoAnn@aol.com