Mortgage Refinancing is popular. Mortgage rates are still historically low and a little under a half of mortgage loans in 2016 were refinance loans, amounting to close to One Trillion Dollars of mortgage refinance loans. While the HARP refinance loan is still available for some underwater borrowers, many borrowers are seeing their equity position improve due to rising home prices. Bills.com offers you resources to check out mortgage rates, cash-out refinance loans, HARP loans, FHA streamline loans.Get a Mortgage Refinance Quote Now
Can you save money with a lower interest rate and cut the time it takes to pay back your mortgage? Or, do you want to lower your monthly payments?
There are many reasons to refinance. The most common reasons are to lower your interest rate, lower your monthly payment, switch to a more stable payment schedule, or take out more money.
When considering a mortgage refinance take into consideration the amount of time you plan on staying in your home, the difference in interest rates, the affordability of your monthly payment, and the amount of closing costs, including lender fees and third party fees. Refinancing can be beneficial, but make sure that you do it for the right reasons.
In order to qualify for a mortgage it is important to get your credit in order. A good credit score helps you get the best rates. Also, check to see the value of your home, which will affect your loan to value ratio and the need for mortgage insurance. Lastly, shop around to find the best mortgage refinance rates.
If you are struggling with your mortgage payment, bills, or need to free up money for other expenses, then consider refinancing your mortgage. Even if your home's value hasn't increased, you can still do a mortgage refinance. The advantage of taking a long term loan is that you can reduce your monthly payment. Withtoday's low interest rates you can possibly lower your interest, lower your payment and save money. However, remember that the longer period could mean paying more interest over the life of the loan.
Do you want to consolidate debt? Or, maybe do some home improvements? If you have equity in your home, then consider taking out a cash-out refinance. You can benefit by saving money on your current mortgage and also improving your overall financial position. If you recently refinanced and have an excellent interest rate, then perhaps a home equity loan (HEL) or home equity line of credit (HELOC) will allow you to keep your current mortgage but still tap into your equity. Avoid taking out loans for frivolous reasons.
One of the most popular reasons to refinance is to save money. Some borrowers are only interested in lowering their monthly payments, whereas, many borrowers want to refinance to save money over the life of the loan. By lowering your interest rate you can immediately save money. By shortening the term of your loan, you can increase those savings. If you have more income or less expenses you can consider putting more money into your monthly mortgage payment. Don’t forget to shop around and check upfront costs.
An adjustable rate mortgage (ARM) starts with a low interest rate. The downside is that over time it can increase, subject to limits set each year and over the life of the loan. The increase in interest rate will cause an increase in monthly payments. So, it is important to make sure that you can afford a new monthly payment. If you are confident that you will be selling the home or paying off the loan in a short-term then look into a five year or seven year ARM. An adjustable rate mortgage is complicated, so make sure that your lender explains all of the details.
Check out Bills.com Refinance Calculator and discover out what a change in rate can mean to your monthly payment and how much you can save over the life of the loan.