When you first purchased your home, you may have been so excited to move into your new home that you settled for a less-than-optimal rate or an adjustable rate mortgage (ARM) at that time. When it comes to
, however, you have the opportunity to take your time and find a lender that provides you with the greatest benefit.
Top Reasons to Refinance
The most obvious reason to refinance is that mortgage rates have dropped
substantially since you first financed your home. A lower interest rate can result in lower monthly mortgage payments or the opportunity to shorten your mortgage from a 30- to 15-year term. If your credit score has improved
along with mortgage
rates since you first purchased your home, this may be an especially ideal time to refinance your home loan.
Refinancing also provides an opportunity to free up the equity you've developed in your home. This additional cash can be used to fund major life expenses, such as higher education costs, medical expenses, travel, or even a home remodel.
You should only move forward with refinancing if you are planning to stay in your current home for the next few years. The fees associated with refinancing could result in your break-even point being months or years into the future.
What to Know before Refinancing
If you have determined that now is the right time to refinance, make sure that you are prepared before you begin the process. First, use our state-of-the-art mortgage calculator to get an idea of what you can expect in terms of monthly payments after your refinance.
You next step will be to take a look at the many refinancing options available to you. Refinancing your existing mortgage is like taking out a new mortgage on your property, so you will have the chance to switch to a new type of financing if you like. Your refinancing choices may include fixed rate and adjustable rate loans, super jumbo loans, government loans, and non-conforming loans.
We encourage you to do your research to find the mortgage that will provide you with the greatest financial benefit. Not all refinance loans are right for everyone. You can learn more about the range of refinancing options available at Bank of Internet USA and get a custom quote by talking to one of our experienced Mortgage Consultants. Simply call us today at 1-888-546-2634.
"How to Know When to Refinance Your Mortgage"
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