You May Be in a Great Position to a Make Your Home Work For You By Refinancing. Your life changes quickly, and your financial strategy should change with it. Whether you are moving, staying in your home for several years, have a lot of expenses or maybe have experienced a change in your financial situation, it’s important to make sure your home loan is keeping up with you. These are the top 10 reasons to refinance your home.
1) Your Mortgage Interest Rate Is Higher Than the Current Market Interest Rate
Even a small reduction in interest rates could save you a lot of money in the long run. Make sure you are getting the lowest possible interest rate to save you and your family money.
2) Remove a co-signer off your mortgage
Many times with mortgage underwriting more strict than it has ever been we need a family member or close friend to co-sign so we can get the house of or dreams or drop our mortgage payments. If you still have you mother on your mortgage and have been paying payments on your own for the past 12 months or more then now is the time to thank your mother for her help and get a loan in your own name. Refinancing to remove a cosigner may more even save you money with a lower rate and payments than your current mortgage.
3) You are Planning to Stay in Your Home for Several Years
Now could be a great time to reevaluate the type of home loan you have. Because you know that you are going to stay put for a long period of time, it’s easy to set and achieve long-term goals with the help of the right home loan. In this situation you want to focus on the lowest rate possible even if the costs are a bit more because you will save more in the long run. Your payment each month could lower, making more money available to you each month.
4) You Want to Pay Off Your Mortgage Sooner
When rates fall, you can take advantage of securing a rate over a shorter mortgage term to pay your mortgage sooner… By having a lower interest rate and payments, you can put additional money towards the principal of your loan and pay your home off sooner. This means more money in your pocket, when you don’t have to pay that mortgage payment each month.
5) You Have an Adjustable Rate Mortgage and You Want to Lock in a Fixed Rate
If your payments are already fluctuating, you can keep your payments steady by refinancing to a fixed rate mortgage. Your rate will stay constant in a rising-rate environment which can be risky. With rates being near record lows, we would recommend locking in your rate to a fixed rate loan.
6) You Have Other Debt You Need To Reduce
We are headed into the holidays and the end of the year. Do you have mounting credit card debt, car loans, student loans, etc? Do you have any other high-interest debt? You may be able to reduce or even eliminate your debt with a or cash-out refinance. Debt consolidation is one of the most popular reasons for refinancing.
7) You Want to Make a Few Home Improvements
Would your home benefit from a new kitchen, new windows, or an addition? A renovation loan or a cash-out refinance can help fund your improvements. The money for home improvements doesn’t necessarily have to come out of your own bank account. Make the equity in the home you have already paid on work for you. Making home improvements through a refinance is a great way to increase the value of your home affordable.
8) You Have College Tuition to Pay
A great way to finance your own education or the education of your child(ren), either for private school or for college, is by refinancing. You can get cash out or a home equity loan for a stress-free payment option that uses the equity you have already built into your home over the years. Let that investment work for you.
9) Skip a mortgage payment
By refinancing you will typically skip one to two mortgage payments. This can be huge benefit if you are the type that is struggling to get ahead or tend to pay your payment just before the due date. If you are always a step behind with your mortgage then skipping a payment or two can give you the breathing room you need to get back on track.
10) Your Credit Score Has Improved
If you have worked hard to improve and repair your financial situation by paying off credit accounts that were weighing down your score, it’s time to call your home loan expert at Riverbank Finance! You could qualify for a much lower interest rate if your credit score substantially improved. It is time to reap the fruits of all of your hard work, by rewarding yourself!
Now may be the perfect time to refinance for a variety of different reasons. Contact Riverbank Finance today to see if it may be a good option for you. The holidays may just be a bit more merry and bright with a few extra dollars in your pockets!
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