Should you refinance your mortgage?
There are many instances when refinancing your existing mortgage can improve your financial position. Refinancing your mortgage can help you lower your payment, get cash out of your home for debt consolidation or home improvements, eliminate costly mortgage insurance (PMI) in conjunction with a new loan, accelerate your loan payoff … it really all depends on your present set of circumstances and your financial goals.
The following are some of the most common situations in which refinancing your existing mortgage may be beneficial. If any of these situations sounds like yours, please give me some more details by using my online Inquiry Form. With more information on your present situation I’ll be happy to reply with either an improvement on your current mortgage, a comparison of different loan options, or just a reassurance that your current mortgage is serving you well.
Most Common Reasons for Refinancing Your Home Loan
- You want to lower your monthly mortgage payment by refinancing into a new, lower-rate home loan — whether a fixed rate loan, an adjustable rate mortgage, or a fixed-ARM combination loan. You may even wish to have the option to make “interest-only” monthly payments on your new loan.
- You purchased a home recently with a 1st and 2nd mortgage and want to refinance your loan to consolidate both loans into one new loan at your home’s current value.
- You have an adjustable rate mortgage now, but want consistent payments in the future by refinancing your loan into a new fixed rate loan
- You want to refinance your loan to get cash from your home’s equity for debt consolidation, home improvements, investments, or other purposes
- You want to build up your equity quicker and pay off your loan sooner by refinancing your loan to an accelerated mortgage (i.e. 30-year to a 20-year, 15-year, or 10-year mortgage).