Benefits of Refinancing Your Mortgage
You may have noticed that refinance rates are still hovering at an extremely low rate, currently around 3.41% for a 30-year fixed and 2.67% for a 15-year fixed. Read on to see some of the benefits of refinancing.
- Lower interest rate = lower monthly payments
- The most common reason why homeowners refinance is to get a lower interest rate. Reducing your monthly payments means you pay less for your home overall, leaving you with more money for short term goals.
- Changing loan types
- An adjustable rate mortgage is attractive to many homeowners because of low rates at first. Since interest rates are always fluctuating though, so is your monthly payment. The added stability that comes with a fixed mortgage is much more attractive, not to mention predictable, to homeowners.
- Build equity faster
- By reducing your mortgage debt faster, you'll own your home that much sooner! This can be achieved by going from a 30-year to a 15 or 20-year mortgage. If the cost to refinance is too high, check to see if your loan has any pre-payment penalties. You might be able to simply pay more per month.
Of course, you should consider the costs of refinancing to determine if it makes sense for you. If you have questions, ask your lender or check out some of the online mortgage calculators.
Or these rates can also mean it's a great time to buy home! If you're considering a move, start your home search here! For all your real estate needs, The Williams Team is here for you!