Here you go…
5. Lower Your Rate
Well, yeah, that is usually the #1 reason but because it is the first thing people usually think about when considering refinancing, we consider it too obvious to rank it higher. Just make sure that even if you have been a previous client of ours, get at least one other quote so you are completely comfortable with the rate we are quoting you. And remember, we always try to match any competitor’s quote, but if we can’t for any reason, we will still be happy to advise you through the process with the other lender.
4. Getting rid of an ARM (Adjustable Rate Mortgage)
Most homeowners don’t ever consider an ARM anymore but if you happen to have one, it may have made sense a few years ago. Now with rates still at record lows, get rid of it! You don’t need that stress. That being said, we can crunch the numbers and if for any reason it would behoove you to keep it until it gets closer to the “balloon” date, we will definitely let you know.
3. Take advantage of your credit score
If you’ve been diligent about making your mortgage payments on time every month, you are normally rewarded with a higher credit score and refinancing will more than likely be a piece of cake. That, in turn, could translate to qualifying for a lower interest rate. WOO HOO!!!
2. Convert to a shorter term on your loan
As with all loan decisions, shortening the length of your loan may be the right thing to do based on your individual circumstances. If you can swing the higher monthly payments on a 15 year fixed, you will ultimately save a lot in interest over staying in a 30 year loan.
And the #1 reason to refinance NOW…
Build Your Equity Faster, Smarter, Better!
If your ultimate goal for homeownership is to pay off your house sooner rather than later then refinancing at a lower rate and shorter term but continuing to make the same monthly payment will mean you’ll have more equity to play around with should you ever need to take any cash out. It is a lot less painful to do that when your interest rate is fixed at let’s say 3.5% rather than 4.5% or higher.
