Five Great Reasons To Refinance A Mortgage
March 22, 2016
Your life is constantly changing and sometimes that means having the opportunity to review your mortgage loan to fit your needs. Here are some factors to help guide you toward a decision.
- You have an ARM.
An adjustable rate mortgage may have seemed like a good idea in the beginning as ARMs often begin with a lower interest rate; however, the interest rates often balloon with time. If the interest rate has met a cost prohibitive level for your budget, it may be a good time to evaluate refinancing your mortgage.
- You have a large amount of revolving debt.
Sometimes circumstances or choices result in personal credit card balances that reach levels that are difficult for homeowners to eliminate. Consolidating those payments into your mortgage and refinancing the balance is for some credit card holders a mature and more manageable way to pay off the debt.
- You hold a secondary mortgage or home equity line of credit.
If the payments or balance on your second mortgage or line of credit are cost prohibitive, refinancing may make the most sense. You can potentially consolidate your two payments into one more affordable option.
- Your mortgage payments have outpaced your income.
When earning potential slows down or in some cases is completely removed from the equation, mortgage payments can become very daunting. If your job situation has changed and your home ownership costs haven’t, then speaking with a banking professional about your refinancing options is pertinent.
- You would like to pay off your home more quickly.
Originating a 30-year mortgage is a pretty typical decision for homebuyers, but from time-to-time it makes more sense to pay off your home more quickly. Many banks offer 20-year or 15-year refinancing options!
Do you find yourself in one of the above situations? Get in touch with one of our Mortgage Experts who’d be happy to help! Or, if you’re feeling confident and want to move forward with taking the initial steps to refinancing feel free to fill out our application form.