Why should you refinance your home? There’s so many reasons why refinancing can be beneficial for you. First off the most obvious reason, lowering your mortgage rate. If it’s been a couple years since you purchased your home, chances are your mortgage rate is much higher than rates are being offered now. According to the Bureau of Economic Analysis, the average interest rate on an outstanding mortgage at the beginning of 2012 was 5.098 percent, and lenders today are offering rates well below that benchmark. Refinancing to lower your rate can save you thousands of dollars over the life of your loan. Although many homeowners would like to refinance but feel like they can’t because they have little or no equity due to falling home values, there are many people who can do it. Talking with a mortgage lender is the first step, even if you feel like it’s not possible for you.
If you’re a borrower who is focused on stability, and started out with an adjustable-rate mortgage, you may be realizing you want to refinance into a fixed-rate loan. Homeowners aren’t refinancing from an ARM mortgage into a fixed rate mortgage because you can get them at a better rate, it’s because you can get them at a stable rate. If stability is what you’re looking for, refinancing into a fixed rate mortgage is the way to go.
Although the craze of doing cash out re finances came to a slow down after the housing bust, it is still something homeowners are choosing to do. Millions of borrowers refinanced for more than they owe, got cash and spent it or invested it. Most borrowers were spending the extra money on paying down debt, and trying to save money.
What’s your reason for needing a refinance? We’d love to hear, and help you with your refinancing.Tweet