ADVANTAGES TO REFINANCING

The choice is whether or not to do it. Now may not be the time to replace your old mortgage. These are some of the things that could be advantageous to you if you refinance your mortgage.

Saving Money:

You can save money with the lower interest rate. You can save even more if you reduce the amount of time needed to pay on the mortgage. If you can keep the payments the same but shorten the time by five years, you can save thousands of dollars.

Lower Interest Rates:

The lower interest rate is what we all want. With the constant interest rate changes, it would be good to keep your eye on those changes. When the interest rate drops 1% lower than your current interest rate, then would be a good time to refinance. This way you are sure to lower your monthly payments.

Get the Equity:

When you refinance your mortgage, you can also get access to some of your equity. A cash out mortgage refinance will enable you to get your equity and provide cash you might need for emergencies or home projects.

Be sure to leave at least 20% of your home’s value in the equity, don’t take it out. Then you not need to get private mortgage insurance. You will have a reserve cash supply, just in case you need to move later.

Get level payments

If you choose to switch from and adjustable rate mortgage to a fixed rate mortgage, you need to do so as soon as possible. With the changing interest rates, if you wait too long to refinance, you could be stuck with the interest rates that the market will force upon you, regardless of the type of rate you have fixed or adjustable.

Calculate your Options

Once you have made the decision to refinance, you should calculate the different options available and see which ones are the most profitable. Some mortgage types will give you a good deal, but some you will need to look at more closely. Choose the ones that give you the greatest savings.

Get quotes from different lenders and compare. Refinancing your home is a huge decision; make sure you are getting the best deal for your money. To help you make profitable decisions you should consult The Home Buyer Defense Guide and Mortgage Secrets Exposed, before you make a final decision.


Happy Surfing,