There are many sound reasons to refinance your mortgage, some that will save you money upfront or in the long run—and others that will provide you with the cash required to achieve your financial goals. It’s best to speak with your financial advisor to ensure to explore all your options. Here are just a few benefits of refinancing.
Secure A Lower Interest Rate
If you lower your interest rate you will save money in accumulative interest, boost how quickly you earn equity in your home, and possibly decrease your monthly payment. For example, refinancing from 9% to 6% on a $100,000 home can decrease your monthly payment by over $200 per month. Keep paying that extra $200 a month towards your principal, or even an extra $100, and you can shave years off the term of your loan.
Switch To A Fixed-Rate Mortgage
Adjustable-rate mortgages are a strategic method of accessing a lower interest rate for the first few years of your loan, but at some point, it may be finically beneficial to refinance with a fixed-rate mortgage. This refinancing method may lower your monthly payment, as well as save your multiple thousands in accumulative interest.
Shorten The Term Of Your Loan
Who doesn’t want to pay their home off faster? If you can refinance for a lower interest rate, even 1 or 2 percent lower—you can shave years off the term of your loan. There may be a slight increase in your monthly payment (as little as $20) but you can potentially pay your home off years earlier than if you stick with your original loan.
Your financial advisor may suggest refinancing as a method consolidating surmounting debt. The goal is to create one lower interest mortgage payment and eliminate almost all the existing credit card, medical, and other debts. This can free up hundreds or thousands of dollars a month currently applied to multiple bills.
Refinancing For Remodeling And Emergency Repairs
If you don’t have the cash to replace your roof, upgrade your windows, invest in energy efficient HVAC, or the remodel you have been dreaming of—refinancing can help. Or, if you purchase a fixer-upper you may be able to take out one mortgage for both your purchase and your renovations. Our trusted partner Kim Shell from SWBC Mortgage can walk you through your options.
In The Market To Purchase A New Home In The NoVA Area?
First things first, if you are ready to purchase a new home in the NoVA area, reach out to the team at Jerry Sardone Realty today!