The Value of Refinancing a Home When You Have Home Equity
When it comes to making the decision of whether to refinance your home, a lot of things come into play. One major factor would be if you have earned home equity over the years. If the answer is yes, continue reading to find out some reason why it might be time to refinance:
- Better Interest Rate: Now that you have some home equity and you owe less on your home, there is a good possibility that you can lock in a lower interest rate. This means saving loads when all is said in done!
- Better Loan Term: After paying off some of your home loan and lowering your interest rate by refinancing, you may be able to lock in a shorter loan term. This will allow you to pay off the rest of your home in a shorter period of time. Something definitely worth looking into.
- Get a Fixed Rate: Adjustable rates have become popular options when purchasing a home because they often offer lower rates than a fixed rate option at first. But once the said time period of an adjustable rate has passed, your mortgage rate will end up increasing. When refinancing, you may also be able to lock in a fixed rate that will last you until you have paid off your home.
- Lower Monthly Payments: Along with the other aforementioned benefits of refinancing, the result may be a lower monthly payment.
So, if you have some home equity there are a considerable amount of benefits to looking into refinancing your home. Next step, make sure that you have everything in check before going to apply. Gather your credit information, income and all other finances and contact one of our specialists today.
Photography by [Roman Motizov] © shutterstock.com