Should I refinance?
It’s a question many homeowners are asking themselves these days. No doubt there are some great reasons to refinance. Do you want a Lower rate? Shorter term? Cash out for bills or refinancing?
Top Reasons to Refinance
- Save more money – Interest rates are still low. Your monthly payments will be reduced if you get a low rate or when your loan term is extended.
- Convert an ARM to a fixed rate mortgage – Lock in a low rate. Repay the loan with
- Eliminate PMI – If your current loan balance is below 80%, refinance and
eliminate private mortgage insurance. VA Loans are exempt from PMI. USDA loans have a very low PMI factor (0.4%).
- Pay down your mortgage quickly – Shorten the length of your mortgage by
reducing the loan term. Monthly payments will go up, but you can save more in the
overall interest payment. And, you’ll be debt free in a shorter time.
- Extra cash now – If you have enough home equity, borrow more than the current
loan balance and pay off credit card balances with the extra cash. Mortgage
interest is deductible. Credit card interest is not.
- Consolidate two loans – You can consolidate first and second mortgages if there’s enough equity (due to high appreciation), and refinance into a single first
mortgage. You’ll most likely have a lower monthly payment.
You owe it yourself to at least look into refinancing your home. Refinancing will make sense if you are into it for the right reasons and at the right time. A Waterstone Mortgage professional mortgage can help you decide if refinancing is the best idea for you right now. If it is, your loan originator will find the best program and rate for you. If it’s not, you’ll get the straight truth. Contact on of our Loan Officers Today!