With interest rates dropping, you may be wondering if it’s time for you to refinance your mortgage. If you’re looking for advice on how to refinance, or more information on the subject, we’re the team to call! Our team is full of experts that regularly assist people in refinancing their mortgages.
When You Might Want To Refinance
The first, and one of the most common reasons that you should refinance your mortgage is for lower interest rates. While this is one of the best reasons to decide to refinance your mortgage, you do want to make sure there is enough of a difference between the interest rates before you make that decision.
A general rule of thumb is if current interest rates are lower by 1% or greater, you should go ahead and refinance your mortgage.
When you refinance for a lower interest rate, you will save money and could also increase the rate at which you build equity in your home. You could end up with a much lower monthly payment, which means more money you can save or spend elsewhere!
You may be wondering why you would refinance your mortgage if the interest rates aren’t much lower than your current rate.
One reason you may wish to refinance would be to convert to either an adjustable rate mortgage or fixed-rate mortgage. Both have their benefits, and while you may have started out with one, you may find later down the road that the other would work better for you.
If you have a fixed-rate mortgage, you may want to change to an adjustable rate mortgage when interest rates have lowered and you are looking for a lower monthly payment.
Looking to change from an adjustable rate mortgage to a fixed-rate mortgage? We suggest doing so when your adjustable rate mortgage has a rate increase that’s higher than a fixed-rate mortgage.
Do you have any home improvement tasks to take care of, or other necessary expenses? If so, you have the option to take cash out of the equity in your home when you refinance, which could help you to pay for any of these expenses. A bonus for when you use the money for home improvement is that the work you do on your house will help increase your home’s overall value!
There can be several reasons to refinance your mortgage, but usually the underlying factor for every reason is being able to save money! While refinancing can be a good idea under certain circumstances, there are times you may not want to. For example, if you are looking to refinance your mortgage so you can put a lot of your money towards something you don’t necessarily need, this could be a bad idea. You don’t want to put your home at risk for something like a new car or big family vacation.
Contact Us Today!
If you’ve decided you want to go ahead and move forward with refinancing your mortgage, just give us a call. Here at Team Crescenzo, we have over 20 years of experience in helping people with their home financing needs. We are your local home loan experts!
We understand that dealing with any financial situation can be stressful. This is why our experts make every step of the process as smooth and pleasant as possible. You can reach us by dialing 843-628-4860. One of our friendly experts will be there for you! We’re more than happy to answer any questions you may have.
If you’re too busy for a phone call, but you’re ready to take steps to refinance your mortgage, just apply online! However you decide to reach us, we’re more than happy to provide you with the mortgage experience you deserve.