Top 5 Reasons to Refinance Your Mortgage

With interest rates at record lows, many homeowners are taking a second look at their current mortgages and wondering if they are worth refinancing. Many great organizations offer multiple finance options such as mortgage refinance loans to fund the renovation of your home, as well as mortgage plus cash options to pay off outstanding debt and consolidate your bills.There are many reasons to refinance.

1: Save Money

According to Fox Business, the top reason that homeowners refinance is to get a lower interest rate. One rule of thumb is that if you can save 1% on your interest rate, then it is probably time to refinance. Of course, there are a lot of factors that can play into this, including how long you plan to stay in your home. A loan expert can work with you to help you see clearly whether or not refinancing will save you money over the long-term.

2: Remodel Your Home

Another reason homeowners refinance is to pull out equity and remodel outdated features of their home. This can be a smart move if you plan to stay in the house and your growing family requires updates or if you plan to sell the home soon and need to make upgrades to compete with other homes in the same market.

3: Pay Off Debt

A refinance consolidation loan can help you pay off high interest debt, such as credit cards, and roll them into a lower interest home loan. This option is especially smart for those who are drowning in monthly payments. Rolling all of those payments into a single lower payment can free up immediate cash flow and even keep you from falling into delinquency on accounts.

4: Get Cash Out of Your Home

There are times when cashing out the equity in your home is a smart idea. If you wish to purchase an investment property, for example, refinancing and pulling some of the equity out of your current home can help you get started running your own business, either as a landlord or flipping properties. Be sure you can manage the added debt you might incur during this process, of course, but this is a good option when you don’t have the savings or investors to get started in a new venture.

Reverse mortgages fall into this category as well. For homeowners who don’t plan to pass their homes down to their heirs, a reverse mortgage can give them the necessary cash to enjoy life today without them having to leave their homes.

5: Shorten the Length of the Mortgage

Interest rates on 15-year mortgages are even lower than on traditional 30-year mortgages. When you visit the Mark Price Mortgages website, they can help you understand not only the rates you’ll get, but the long-term impact of those rates. While a 15-year mortgage might give you a lower rate, you’ll want to be sure you can handle the extra amount on your monthly payments. Also, deciding on an Adjustable Rate Mortgage (ARM) or a Fixed Rate Mortgage is an important decision.

Refinancing your home can help you meet your personal financial goals, save you money over the life of the loan and ensure you get the best rates possible.

Author: Richard Casteel

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Richard is the chief author of this blog. He worked as a financial advisor in money market form last 10 yrs. His financial sense in Share trading and any other trading is just outstanding. He just shares his knowledge and experience through this blog. You can contact him directly though

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