Refinancing your mortgage means getting a new loan to pay off your existing loan. Depending on your current financial or personal situation, there are many reasons one would desire a refinance. An Equity Smart Home Loan Expert will be happy to share how refinancing might be right for you.
A lower rate often results in lower mortgage payments. You can use the extra money each month to pay off debt, for savings or investments, or to spend however you like.
You may end up with a comparable, or slightly higher, monthly payment, but with a shorter term, so you’ll pay off your loan sooner. You’ll save a ton of money over time by paying less toward interest, and you’ll build equity faster, increasing your net worth.
Switching from an adjustable rate mortgage (ARM) to a fixed rate loan gives you predictable monthly payments over the life of the loan. You won’t experience dramatic monthly payment increases, making long-term budget planning easier.
Cash-out refinancing turns the equity you have in your home into cash. From paying off high-interest credit cards to taking a dream vacation, there are no restrictions to how you use the money. There are also no tax penalties for accessing or using this money.