Refinance: New Year, New Mortgage
Welcome to the beginning of a new decade. This is the year to dream big and live larger. In order to do so, you may be looking to check some financial resolutions off the list. Refinancing can help.
How Do I Lower My Mortgage Payment?
Refinancing to reduce the interest rate is one of the most popular ways to lower your monthly mortgage payment. And in 2019, the industry saw a surge of homeowners doing just that. According to Freddie Mac’s Q3 2019 Refinance Report, the average age of loans being refinanced dropped from 6.17 years in 2018 to just 2.4 years. With interest rates hitting three-year lows, plenty of home loans became perfect refi candidates.
What Else Can Refinancing Do?
Whatever your New Year’s financial goals are, there is probably a refinancing option to help you achieve it. Different types of refinances can help you…
- pay off debt
- get started on renovations
- pay off your home sooner
- provide financial security
Extra cash –Cash-out refinances allow borrowers to turn their home equity into liquid funds. Those funds can be used for things like renovations or paying off debt. This is also a popular option for couples going through a divorce, because one party can keep the house while the other walks away with their share of the equity.
Reduce the Loan Term – When rates are low, there is prime opportunity to save thousands in the long run. Refinancing to shorten the loan term is ideal for borrowers who are comfortable with about the same or a little higher monthly payment. The benefit is they will be on the fast track to paying off the home. Meaning less money spent on interest over the life of the loan.
Convert to a Fixed-Rate – Plenty of borrowers have found an Adjustable Rate Mortgage (ARM) to be a great short-term option. When nearing the end of the initial fixed period, however, consider locking in a low interest rate. Converting from an ARM through refinance allows homeowners to secure peace of mind when rates are low.
Not only is it a great time to secure a low rate, but we have the experience and expertise to seamlessly guide you through a refinance. Contact a mortgage expert today to start off your New Year with a new mortgage.