4 Reasons to Refinance Your Home Mortgage Before 2017

Typically, a home is the most significant investment for any family or individual. If you have a mortgage on your home, one of the easiest ways to reduce the cost of home ownership is refinancing the loan to get a better interest rate. If you’re on the fence about whether you should refinance, below are four reasons to say “yes” to refinancing.

Avoid Paying Higher Interest

The higher the interest rate for your mortgage, the more you pay to own your home free and clear. Interest rates have been relatively low in recent years, but some financial experts believe the Federal Reserve will raise interest rates as soon as the end of 2016.       


An interest rate hike within the next few months is debatable, but one thing seems clear: Interest rates won’t be dropping significantly anytime soon; if they change, they’ll rise. If interest rates are lower now than when you last financed your home, refinancing to get a lower interest rate could save you thousands of dollars in interest on remaining mortgage payments.

Use a Fixed Rate Mortgage

Many homeowners prefer a long-term, fixed-rate mortgage because it makes the cost of homeownership more predictable than a short-term, adjustable-rate mortgage (ARM). Short-term ARMs often begin with an attractive interest rate, but when the rate becomes adjustable, it can rise significantly, and make a mortgage payment much higher. 

Considering that interest rates are currently low and seem likely to rise in the not too distant future, now is a good time to consider turning a short ARM into a long-term ARM or a fixed-rate mortgage, making Either option can make it easier to plan your long-term finances.            

Build Home Equity Faster

By lowering the interest rate for your mortgage, you have the opportunity to keep paying the same monthly amount, with a greater percentage of the payment going toward the loan principal. This helps you pay for your home faster, which increases your borrowing power for home equity loans. The more equity you have in your home, the more you can borrow.   

Increase Financial Flexibility

Refinancing for a lower interest rate can increase financial flexibility in two ways: In addition to giving you the opportunity to build borrowing power for home equity loans faster, it gives you the option of making lower mortgage payments to create more room for other expenses. For many homeowners, lowering their mortgage interest rate is essentially like earning more money. 

Plan to Refinance or Buy a Home? 

If so, we’d like to present refinancing options that can improve your financial standing as a homeowner. For first-time buyers, we also offer an impressive selection of First Mortgages that help you get a great interest rate the first time around, and plan for the future.    


Whether you need to finance a first home or refinance a place you’ve called home for years, apply for a mortgage online through our secure website. To learn more before applying, call us today at (800) 325-9905, or use our contact form, to connect with a loan specialist. We look forward to helping you make homeownership more affordable with attractive financing!

 


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