(Every Tuesday we feature a blog from one of our fantastic affiliates, Tara Mortgage Services!)
Do any of these 7 financial situations sound like you? If they do, then you might be ready to refinance your mortgage!
Top Reasons to Refinance Your Mortgage
1. Your Interest Rate is Higher than Current Mortgage Rates
Interest rates change, and in recent years, have adjusted in your favor! If your mortgage closed more than 5 years ago, the chances are that your rate is higher than current mortgage rates. Refinancing to lower the mortgage interest rate is the top reason that clients contact our office.
2. Looking To Lower Monthly Payment
When you refinance into a new loan, not can you get a lower interest rate but it also adjusts your monthly payments. For example, if your original loan was for 300k with a 30-year term and you’ve paid off 60k since then, your new mortgage will be for only 240k. What’s more, the clock for paying off the loan in 30 years restarts!
3. You Want to Make Home Improvements
A cash-out refi, home equity loan, or HELOC gives you access to the equity of your home. Each of these refinances options are different and one might be better suited for you than the other. Call our office for help deciding which refi is right for you.
4. You’re Nearing Retirement
If you’re approaching retirement age, a refi can lower your monthly payment into one you can afford more comfortably. If you’ve already paid off your loan, consider a reverse mortgage to help supplement your retirement income.
5. You Want a Fixed Rate
An adjustable rate mortgage starts low but eventually changes after a certain number of years, and usually, the rate goes up. Getting into a fixed-rate avoids these drastic changes and locks in a low rate for the life of your loan.
6. You Want to Pay Off Your 30-year Mortgage Sooner
Refinancing your 30-year fixed rate mortgage into a 10-year or 15-year mortgage will help you pay off your home sooner. Interest rates on 15-year loans can be as much as a full percentage point lower than a 30-year loan. This means that more of your payment goes toward the principle plus you also save money on interest!
7. Your Credit Score Has improved Since You Last Closed
Remember that your interest rate is largely dependent on your credit score. If it’s gone up since your closed your loan, that means that you likely qualify for a lower rate today! How low? Apply to find out! Use our free online application and we’ll let you know what rate you qualify for now.
There are many more reasons why people come to see us about refinancing their current loan. Want to find out if refinancing can help you out in your financial situation? Contact Tara Mortgage Services today for a no-obligation refinance consult!
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