Should you consider a mortgage refinance loan?
Home refinancing is a big step, but if taken at the right time, could be to your financial benefit. A mortgage expert, like the professionals at Intercap Lending, can offer advice on when to refinance your home. However, knowing the reasons to consider a refinance loan could help you come to a decision.
Lower Interest Rate
Interest rates fluctuate, and you may have become a homeowner when the rates were high. If that’s the case – and if the current rate is lower – taking out a refinance loan could be a smart move. By refinancing, you can pay less in interest every month and over the lifetime of your mortgage. That could save you a significant amount of cash.
Lower Mortgage Payment
If you’re hoping to lower your monthly mortgage payments, but the current interest rate isn’t looking good, home refinancing could allow you to accomplish your goal. You can get a longer loan term when you refinance, and by doing so you can put less of your hard-earned money toward your mortgage each month.
Better Home Loan Terms
Extending the term of your home loan isn’t your only option when you refinance. You could opt to shorten the term to build equity faster. Or, you could decide to switch from an adjustable-rate mortgage to one with a fixed rate. You might even want a refinance loan with a term that expires when you retire – that way, you can look forward to a mortgage-free retirement.
No More Mortgage Insurance
When you purchased your dream home, mortgage insurance may have been a necessity. Since then, your equity has grown — and you may be able to drop the extra expense through home refinancing. With a refinance loan in an amount that’s 80 percent or less of the current appraised value of your home, you can say goodbye to paying mortgage insurance.
Free Up the Cash Flow
If credit card debt, high-interest loans, medical bills and other expenses are putting a strain on your budget, a refinance loan might be a good idea. You can pay them off with a new mortgage and enjoy a little more financial freedom every month. Home refinancing can also provide you with the cash you need to fund a new business, start a remodeling project or take on any other task.
Is now the right time to refinance your home? To get expert assistance making the decision, turn to the professionals at Intercap Lending.
Our highly experienced mortgage brokers can offer practical advice on home refinancing and help you decide on the best course of action to meet your financial goals. For a free consultation to discuss mortgage refinance loans with the Intercap Lending team, contact our Orem, Utah, office today.