5 Reasons to Refinance That Every Homeowner Should Know
More and more people are refinancing their homes to solve their financial woes...but why? One reason is that refinancing saves homeowners an average of $4,264/year.
In fact, just last year almost 2,000,000 people refinanced their homes to the tune of $749 billion. While many have already taken advantage of historically low rates, there are still 6.7 million homeowners that have yet to cash in on the potential savings.
You see, this opportunity was born out of the 2008 Housing Crisis. The Fed dropped rates to historical lows to fight off the recession and opened a window where many Americans could refinance and save. But recently the Fed has signaled interest rates are about to rise.
That’s why it’s important to see if you could benefit from refinancing, before it’s too late.
Reason #1 - Take Advantage Of Historically Low Rates Before They Go Back Up
As we mentioned above, borrowing rates have dropped to historical lows and they can’t stay this low for much longer. In fact, the Fed has already taken steps towards the next rate hike. That’s why it’s so important you take advantage of this opportunity now.
Reason #2 - Your Financial Situation Has Changed
Life is always changing, we know that. You might have taken a new job that pays more… or you might have new expenses that stretch your money further and further every month.
So another loan type might make more sense for you today.
You might be able to cut your 30-year mortgage down by years and still repay the same amount of money. For example, say you took out a 30-year loan at 6% in 2007. You could’ve refinanced that in 2014 at 3.55% and paid off your house 9 years earlier (saving $118,058!).
Or if you’re looking for an extra $250 per month, you might be able to refinance your 30-year mortgage at a lower rate and make smaller monthly payments.
Another option is if you have an adjustable rate mortgage, you could refinance to a fixed-rate mortgage. You'll lock-in one of the lowest rates ever to protect yourself against the likelihood of rates rising in the future. And it'll be much easier to plan and budget for the long term.
Of course, you could do a lot of things… but to find out what’s best for you, answer a few questions about your unique situation to find out how much you can save, and then speak to an expert for free if you like what you see:
Reason # 3 - You Currently Have Other Types of Debt
You might have other debt… credit cards, auto-loans, personal loans.
And with average rates for these sitting at 4.77% to anywhere north of 15.96%, it makes sense to consolidate your debt through the lower rates of your mortgage loan.
All you need to do is refinance with a cash-out option or pick up a home equity loan. You’ll be getting a much better rate - and cutting your monthly payments down.
Another lesser-known bonus that most people don’t think about, is that mortgage interest is tax-deductible. So you can cut down on your tax bill too (if this seems like a good fix, make sure to consult with a tax advisor too). Even better!
But should you refinance or take out a home equity loan? The best way to find out is to enter your home info into the free Mortgage Rate Quote calculator You’ll discover which is best for you and can set up a free consultation for answers to any other questions you might have.
Reason #4 - You Were Hit Hard By The Housing Crash
In the aftermath of the Housing Crisis, the Government created the Home Affordable Refinance Program (or HARP). It helps help people with little or no equity refinance their homes at a much better rate. And they’ve already helped 3.3 million people save money!
Mortgage Rate Quote specializes in helping people like you do the same. And they’ve put together a free questionnaire here so you can quickly discover if you qualify.
Reason #5 - You Want To Make a Big Purchase or Go Back to School
We all get squeezed financially…
So when it comes to big money expenses like a new car or wedding, refinancing is better than taking out another loan at a much higher rate.
The same goes for going back into education to boost your long-term income...And for any investments in your own home (like a renovation that increases the property value, but you can also enjoy), a business, or a rental property!
If you’ve ever wanted to make a special purchase, you should find out the best option available to you.
For full artlicle: https://www.bankrate.com/finance/mortgages/myfinance-mortgages/?mf_foreign_referrer=https%3A%2F%2Fwww.bankrate.com%2Fcalculators%2Fmortgages%2Fnew-house-calculator.aspx&mf_ct_campaign=bankratecru2&utm_medium=mfCRU