Mortgage interest rates have fallen to record levels in the past few weeks. Let’s refinance, guys!!! What are the benefits?
Below are the top 5 reasons YOU should refinance your mortgage today.
1. Lower your interest rate and monthly payment.
Today’s lower mortgage rates make it possible to improve terms on previously financed mortgage transactions. LBC Mortgage specialists can help you find a mortgage program that will save you money on interest payments and reduce your monthly payment.
2. Shorten the term of the loan. Pay off your loan SOONER!!!
Let’s say you are currently paying off a 30-year fixed-rate mortgage loan that was taken out 7 years ago. LBC Mortgage team may offer you the option to refinance your mortgage for a new shorter term of 15 or 20 years, allowing you to pay the mortgage off sooner.
3. Cash Out!
Your property has gone up in value and your principal has decreased over the years, so you have a lot of equity.
Cash-out from your existing mortgage, leverage your equity to do one of the following:
– Buy an investment property
– Improve your existing property – build a pool, the second floor or remodel it
– Go on vacation
– Consolidate your debts.
– Maybe pay off a car loan with a higher interest rate
4. Consolidate your First and Second mortgage into one low-rate loan.
The refinancing process can have different scenarios, the outcome of the process depends largely on the amount of equity in your home, the amount of the mortgage, the term of the mortgage, your credit score, and other factors. Often, mortgage consolidation can result in lower monthly payments and even reduce your loan rate. In addition, many people find that combining their first and second mortgages gives their financial life more structure and organization.
LBC Mortgage experts can help you by assessing your current financial position to determine if and when combining your first and second mortgage is the best choice for your refinancing needs.
5. Get a fixed loan if you currently have an adjustable-rate mortgage (ARM)
It is known that ARMs initially offer lower rates than fixed-rate mortgages, but often periodic adjustments over the years can lead to a situation where the rate is higher than what is available with a fixed-rate mortgage. If that happens to your loan, do not delay refinancing it and stop worrying about future interest rate hikes.
The decision to refinance a mortgage loan must be considered and weighed. It is also necessary to consider the costs of the transaction itself and compare them to the future benefits of refinancing. Since this is essentially a new loan, the client will need to re-finance the closing costs. Contact us today to discuss the details!