Your mortgage is the biggest expense you have. It’s the roof over your head, the place you lay your head, and your base of operations. A home can be a sanctuary, an office, a workout space, a gathering place, or anything you want it to be. It’s so important to your life. So why would you want to overpay for it? Every home situation has different requirements, and here are five great reasons to refinance your mortgage right now.
If you’re planning on living in the home for a long time, it makes sense to start saving money right away. If you are paying an interest rate higher than 4%, you’re paying way too much. Refinancing right now will lower your monthly payment, which gives you lots of options on how to proceed. The best effect of this is that you pay less money for your mortgage, whether you lower your monthly payment or shorten the term of your loan. Paying less interest is always a great way to save money.
Going back to the point earlier, if you’re a homeowner planning on a lengthy stay, an ARM is eventually going to bite you in the behind. An ARM, or Adjustable Rate Mortgage, is great when rates are low, like right now. What happens when rates go up again? Since they’ve stayed low for the last few years, people may have been lulled into a false sense of security about rates. If you have an ARM and are paying today’s low rates, you feel pretty smart right now. Well, you could lock in that low rate for the rest of your loan if you act right now. Rates may not get lower than this for a long time, and if they do, you can refinance again then, and not have to pay the higher rate in-between.
Did you sign up for a balloon program? If so, call us now. You can transition out of a balloon program to a new fixed-rate mortgage and avoid having to pay the crippling balloon payment at the end of your term. Don’t get caught and lose your home. Refinance to a fixed-rate mortgage and save yourself.
The assortment of low-and-no-interest loans are great, allowing homeowners to buy their dream house without having to save for years or get a loan from their parents to buy their first house. FHA and HARP have really helped people that may have been stuck renting realize their dreams. Unfortunately, these programs also come with a catch in the form of Private Mortgage Insurance or PMI. PMI is an insurance policy paid directly to the lender as part of your mortgage to guarantee the loan for them. It’s essentially a part of the loan that you pay every month and doesn’t go towards paying off your mortgage. With a refinance, you can remove the PMI from your home if you meet the conditions to get rid of it, and save yourself money every month.
Homes tend to increase in value. It’s how the market works. Since this is generally assumed, you essentially build equity in the house both by making your payments every month and by just existing. Your home’s value rising is great for you, as you’re essentially paying less for a property that is worth more. You’re a bargain shopper! You can also use this in a refinance to take some cash out of your home. A Cash Out Refinance takes the equity in your home and refinances your home to current rates, giving you the ability to take some of the equity back out of your home. You can then use that to pay off high-interest credit card bills and other expenses and save lots of money in interest.
If any of these reasons to refinance ring a bell, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?