Economic fluctuations have made regular home loan “health checks” a good idea for homeowners. While property market trends change, there could be a chance that your mortgage rate is no longer the lowest rate you can get.
If you find out that your mortgage rate is no longer comparable to current rates, the first thing to do is to consider your options. You can consult with a lender to find out whether refinancing would be the best solution to your situation. Refinancing serves a number of purposes. Some of the main reasons home owners choose to refinance are:
- More Affordable Mortgage Rates
People refinance to take advantage of better interest rates. Borrowers are able to save money by getting a loan with a lower rate of interest and no matter how you look at it, savings will always be a good thing regardless of the amount. Paying less every month could help you generate extra cash which can be used for other purposes. See if there are better rates than you currently have by contacting your lender.
- The Need for Additional Funds
Sending a kid to college, remodeling, buying a car, medical expenses… these are all common reasons for needing extra funds. Refinancing to a lower rate in itself will be beneficial financially. Refinancing with cash out will grant the extra funds needed for the expenses mentioned previously (or whatever you may need additional funds for). Often times, mortgage interest rates are much more competitive than a general loan. Ask us if this route for acquiring extra funds makes sense for you!
- Better Market Deals
As a home owner who wishes to refinance, you have two options: you can seek your current lender’s help in getting a refinancing mortgage or switch to a new one. The key is to keep your mind open to other probable solutions, even to those that are offered by other providers. Many people just dial the phone number on their mortgage statement and proceed with refinancing. You have the right to contact any mortgage banker! You can receive quotes from more than one mortgage banker and compare. Just be cautious for the unbelievably low rate commercials you see and hear on TV and the radio. Many times, there are hidden fees and you may even end up “buying” these lower rates by paying points. We are always available to answer your questions about fees, rates or mortgage terminology in general. We
Refinancing can serve as a lifeline during times of need. If properly managed, refinancing could become a life-changing move that could afford different benefits to home owners. We would be happy to help you explore these options further. Rates have been consistently and historically low. There is no time like the present to see if we can help you lower your mortgage interest rate.