Monday, 15 May 2017 02:18

Thinking About Refinancing Your Mortgage? 4 Ways to Ensure It's Worth Your Time

Written by
Rate this item
(0 votes)

If you're familiar with the real estate market, you've likely heard the term 'refinancing' and may be wondering what this can mean for your mortgage and your financial well-being. While refinancing can be a great benefit for those who are looking for a lower interest rate or a different mortgage type, here are the details on what it can offer and whether or not it will work for you. 

Acquiring A Lower Interest Rate 

The most common reason people consider refinancing their home is to take advantage of a lowered interest rate. While it might seem like a minimal savings each month, a lower interest rate can add up to considerable savings over time and help you pay off your home loan more quickly. It's just important to ensure that you're aware of all the associated costs with refinancing before pursuing this option. 

Limiting Your Loan Term 

Refinancing also offers homeowners the opportunity to change the term of their loan, which can offer improved financial stability much sooner than expected. Many homeowners may avoid this option because it can bump up their monthly payment, but the difference in cost can be relatively insignificant while still offering financial freedom in less time. 

Changing Your Mortgage Type 

There are benefits and drawbacks of adjustable-rate and fixed-rate mortgages, and that's why many people make the decision to refinance and opt out of their rate profile. While fixed-rate mortgages offer stability since you'll know what you're paying, an adjustable-rate will move with the market and can actually mean more savings at the end of the day. The option that will work best for you is dependent upon how comfortable you feel with the market. 

Consolidating Your Debt 

For homeowners who have a high debt load, refinancing can be a means of paying less in order to pay down debt at a more rapid rate. However, it's important before choosing this option to determine a budget plan you can stick with, as refinancing to consolidate your debt does not necessarily mean you'll be successful at paying it down. Ensure you weigh your options and potential savings carefully before making a decision. 

Refinancing may seem like a good financial decision, but there are costs that go along with this mortgage option so it's important to crunch the numbers to ensure it will work in your favor. If you're currently considering refinancing, you may want to contact one of our mortgage professionals for more information.

Read 52 times

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Classifieds

406Productions406Productions
06-09-15Multi-MediaServicesHelena$ Go to 406Productions.com
We're not just photography. Full virtual tour and ...
Build your dream home here!Build your dream home here!
01-18-17Real Estate For SaleHelena$ 79,900.00
Check out this beautiful land for sale, ready for ...
List your classifieds on HelenasMostWanted.com for ...
Full Service Audio Production

Upcoming Events

21 Oct 2017
09:00AM - 05:00PM
2017 ITA Orientation Workshop
04 Nov 2017
09:00AM - 01:00PM
ITA Pet/Handler Evaluations
18 Nov 2017
09:00AM - 01:00PM
2017 ITA Orientation Workshop

Just for you...

Check out more articles from local businesses

Small Business Resources

Business advise and articles for small businesses.

More Small Business Articles