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Low rates make it a tempting time to refinance your loan. At Primary Residential Mortgage, Inc. we want you to feel confident about any home financing decisions you make, so we’ve rounded up some of the main reasons refinancing could be the smart move for you.
1. You want a lower interest rate
While mortgage interest rates are relatively low, a better rate could add up to thousands of dollars over time. Refinancing could help you get a lower rate if the overall rates have dropped or if you’ve improved your credit.
2. You want a lower monthly payment
Refinancing may help you get a lower monthly mortgage payment—useful if you’d like to limit your monthly expenses or use the leftover money for other things.
3. You’d like to eliminate private mortgage insurance
Tired of making private mortgage insurance payments each month? You may be able to refinance and get rid of those pesky monthly PMI payments.
4. You’d like to pay down other high-interest debt
Mortgages usually have much lower interest rates than credit cards and other loans. If you’ve built up some high-interest debt, refinancing could help you pay it down, limiting your costs over time and setting you up for a more stable financial future.
5. You want to cash-out and get money for renovations or other goals
A cash-out refinance can help in many different ways, whether you want to remodel your bathrooms, upgrade windows, replace your kitchen appliances or pay for a special trip.
6. You’d like to switch from an adjustable-rate mortgage to a fixed-rate mortgage
Adjustable-rate mortgages can be great in some situations, but refinancing can help if you’d like to switch to a fixed rate mortgage so you don’t have to worry about rising costs.
7. You’d like to pay off your loan faster
If you’d like to pay off your loan quickly, refinancing for a shorter loan term could help you get a better loan or lower interest rates.
8. You’d like to pay off your loan slower
Most people want to pay their loans off as quickly as possible, but in some situations, it may be advantageous to pay off your loan slower while focusing on paying off other debt or improving your retirement accounts. If that’s the case, you may be able to refinance for a longer loan term.
9. You need to buy someone else out
Refinancing may be a smart solution if you need to buy someone else out of your mortgage. (For example an ex-spouse or parents who co-signed your loan.)
Refinancing is a versatile tool that can help you meet many different financial goals. If you think it‘s the right option for you, act quickly before rates rise again. Contact one of our loan officers to begin!