Is mortgage refinancing a good option

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Is mortgage refinancing a good option

Mortgage refinancing can save you thousands of dollars and make your financial life easier and it is one of the major reasons why you should consider refinancing. 

Here are four scenarios when you should consider mortgage refinancing:

  • If you have an improvement in your Credit Score

If you have a bad credit mortgage, you’re paying higher mortgage rates than what lenders are offering borrowers with good credit now.

Pat yourself on the back if you’ve paid down credit card debt, caught up on overdue bills, and paid your bills on time recently. Check your credit score. You might qualify for a lower rate on your mortgage if your score has improved significantly.

 

  • Enough Time to Benefit from Home Refinancing

Don’t forget you’ll pay closing costs to refinance, which could add up to a few thousand dollars.

Even if you can get a lower mortgage rate, refinancing might not make sense if you plan to sell the home in the next couple of years.

 

  • Avoid ARM Adjustments

If you’re adjustable rate mortgage is about to reset to a higher rate, refinancing to a fixed rate or a lower adjustable rate mortgage could make sense.

 

Cash-out Refinancing for Home Improvements

With a cash-out refinancing, you tap into the equity you’ve built and take out a larger mortgage than what you currently owe.

This financial strategy can make sense for home improvement projects that could increase the value of your property.

Another benefit: The interest you pay on the cash is tax deductible, unlike the interest you’d pay on a personal loan.

Shop around for the best rates if you decide refinancing is right you. Get in touch with me now!

 

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