Why should you Refinance?
Move to Shorter Term
Depending on your situation, it could be beneficial to switch to a shorter term, even if it increases your monthly payments, because you will end up paying less interest and eliminating this debt at a faster rate.
Move to Longer Term
If you want to lower payments and are planning on staying in your home long term – this could be a good option to help free up some monthly income.
Move from Adjustable-Rate to Fixed-Rate Mortgage
If you’re looking for consistency in your monthly payments, moving to a fixed rate mortgage can be in your best interest.
Move from Fixed-Rate to Adjustable-Rate Mortgage
If you’re advancing in a career that could require you to move within a few years, are thinking about starting a family, or just want to keep your long-term options open, an ARM could be a good choice. You’ll get the benefit of a lower introductory rate and the flexibility to move away or trade up to a bigger home before the fixed-rate period ends.
Get a cash-out Refinance
This replaces your current mortgage with a new mortgage for more than you currently owe. The difference of the two goes to you in the form of cash. You can use this to spend on home improvements, debt consolidation, or other financial needs.
Get A lower Rate
In some cases – when market interest rates are lower than the current rate you pay, you could save significant amounts of money by simply refinancing for a lower rate.