There are many reasons why you may want to refinance your mortgage. This article from HomeZada not only discusses some of the reasons people refinance, it also gives you a roadmap to follow before you start the process. It even suggests key considerations you should think through to help determine if you should refinance your mortgage. Check out the article and let me know if I can answer any questions or help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: HomeZada | Repost Houterloot 2/9/2022 -
Are you contemplating refinancing your mortgage, but aren’t sure if it’s the right move? Some common reasons people do a refinance include:
- To lower interest rates by at least .5%
- To switch to a fixed interest rate
- To shorten the life of their loan
- To tap into some of the equity you’ve built up in the home
- To get better terms based on an improved financial situation (i.e. better credit, debt picture, etc)
- Because they’re nearing retirement
- To consolidate or change the terms of a second mortgage
- Because they’re getting a divorce
Truthfully, it’s hard to be one hundred percent sure that you’re taking the right step, but there are things to consider that might help you decide.
Do the math
Having identified your motivation for refinancing, it’s time to figure out what loan will help you reach that goal.
In short, if you want to lower your monthly payment, pay off your loan faster, or save on interest over the life of the loan, a rate-and-term refinance may be the best option for you.
Alternatively, a cash-out refinance may be a better option if you wish to take cash out or consolidate your debt.
Read the full article...
