Now is the Time to Refinance your Mortgage
With today’s low mortgage rates and the Fed signaling a rate cut may be coming as soon as next month, it might be a great time to consider a refinance. Many homeowners choose to refinance to lower their payment, but you could also leverage the equity in your home to consolidate debt*, finance home renovations, pay for college tuition, and more. Are you thinking about any of the following items? It might be time to refinance your mortgage.
Lowering your mortgage rate
Depending on your current rate, a rate/term refi may allow you to refinance and get a lower mortgage rate. Also, a lower rate can help you lower your monthly housing expense. If you currently have an adjustable rate mortgage, you could refinance to a fixed-rate mortgage to avoid fluctuation in your rate.
Shortening your loan term
If you want to retire early or just free up cash for later in life, refinancing to shorten your loan term will allow you to pay down your mortgage sooner. Keep in mind that your payment will likely go up since you’re paying down the same mortgage amount, just in less time.
Doing a cash-out refi can allow you to take money out when you refinance your home and use that money towards debt consolidation*. Some potential benefits of this approach are making one monthly payment instead of multiple payments and lowering the interest rate of your debt. It’s important to remember you shouldn’t continually tap your home equity to pay off debt, but if you use it on a one-time or rare basis to pay off the high-interest debt it can be a great tool to help you improve your monthly cash flow.
Financing home renovations
Are you dreaming of a gourmet kitchen, but you don’t have the funding for a renovation? Leverage your home equity to make your ideal remodel a reality. For many homeowners, a refinance is a better option than a Home Equity Line of Credit (HELOC) if they plan to be in the home for more than five years. Your loan officer can work with you to determine the best way to fund your home renovations.
Funding college tuition
It’s no secret that college tuition is on the rise – and many homeowners are using their home equity to pay for their child’s education. If you need to access a lump sum of cash, you can do a cash-out refinance to take money out for college.
If you have questions about refinancing your home, click here or call us today at 303-779-0591. Our loan experts are here to help!
*Debt consolidation does not pay off the debt, please consult a financial advisor regarding the effect of consolidating short-term debt into long-term debt.