Yes, even at today’s rates!
You may be surprised to learn that refinancing a mortgage can be a wise move for many homeowners, even at today’s mortgage rates.
Let’s look at six reasons a homeowner may benefit from refinancing.
- You have an adjustable-rate mortgage, with a rate either higher or scheduled to reset higher, soon. Refinancing at today’s rates may save you money, protect you against future rate bumps, or both.
- Your credit score has improved since taking out your current loan, which may result in the ability to refinance at a better rate.
- You have equity in your home which can be redeployed to pay off high interest debt, pay for home improvements, pay for college tuition to avoid student loans, invest in property, or other opportunities financially beneficial to you and your family.
- Refinancing to get a shorter-term loan. Trading your existing 30-year mortgage for a 15-year mortgage will often result in increased monthly payments, but the 15-year mortgage rate could be at a lower rate. Either way, when you shorten the term of your loan, you end up paying less interest over time.
- Refinancing to eliminate an FHA loan with mortgage insurance. These premiums could be costing you $800 - $1,050 per year for every $100,000 borrowed, for the life of the loan. The only way to get rid of the premiums is to get a new loan not backed by the FHA.
- You need to add or remove a borrower. In most cases, adding or removing a borrower changes the terms of your loan, requiring refinancing (unless a co-borrower is deceased, in which case lenders can remove the deceased owner). If one person is keeping the property and paying a portion of the equity to the other borrower, a cash-out refinance or a rate-and-term refinance may be solutions if the person keeping the property qualifies for the refinanced property without the co-borrower.
First Western Mortgage Lenders are here to help you evaluate your options and forge a plan in your best interest. Give us a call at 479-845-0972 or come by and let’s talk about your unique needs.
Equal Housing Lender. NMLS#498427