Refinancing your mortgage loan can be a big decision for consumers. These days it's not just about getting a lower interest rate on your mortgage, there are many reasons to refinance.
Of course, the biggest reason: Lower your interest rate. This is one of the main reasons people refinance their mortgage. You can get a lower monthly payment and that can make a big difference in your monthly budget and the interest you pay over the term of your loan.
Another big reason in today's market: Get out of your adjustable rate mortgage (ARM). In the past couple years, many people were put into an ARM to save on a monthly payment or to qualify to get into their first home. The downside of these mortgages is when the adjust. That attractive rate now becomes a monthly burden when it adjusts. Many people at this point look to refinance to get the stability of a fixed rate mortgage.
Credit changes can also be a reason for refinancing. Some homeowners have to take a higher interest rate if their credit is bruised. When the time comes that their credit is in a better standing, they could consider refinancing to a lower interest rate that they would qualify for.
Some consumers have the flexibility to change loan terms from a 30 year loan to a 15 or 20 year loan, thus building equity faster. If a consumer is in a position to afford the monthly payment on a shorter term loan, they save a large amount in finance fees and pay down the loan balance faster
Another reason to refince is to pull out equity you have established. By utilizing a cash-out refinance, a homeowner can use the equity they have to turn into cash. It could be to pay off credit cards, do repair work on a home, finance college costs or just personal spending money.
Whatever the reason may be that a homeowner needs to refinance, I am committed to discussing the options with you and helping you determine what program are available and what makes the most sense. I am keeping a close eye on interest rates and now is a great time to consider a refinance. Please contact me for a complimentary consultation.
Leah Ross, XCO, AmeriFirst Home Mortgage
Please feel free to contact me via email at LRoss@AmeriFirst.com or Phone 813-643-8430 or 269-488-9527