Original Post Date: September 1, 2015; Updated May 21, 2018
If you’ve owned your home for some time, you may be wondering if it would be beneficial to refinance your mortgage. Here are a few reasons why it may be a great option for you to consider.
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save you money on financing fees.
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity more quickly and save a tremendous amount of money on financing fees.
Some homeowners who start out in an Adjustable-Rate Mortgage (ARM) find that they would like to switch to the stability of a fixed-rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but Apex can provide you with loan comparison charts to find out if you can save money with another type of loan program that might better suit your current situation. For help deciding read our blog Fixed-Rate or Adjustable? 5 Questions to Help You Decide.
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. Apex can review your current credit score, evaluate the terms of your existing mortgage, and provide options for other loan programs that could not only reduce your monthly payment, but also save you money on interest fees paid over the life of the loan. If you’d like more information on improving your credit, be sure to read our Guide to Understanding Credit.
A cash-out refinance allows you to tap into the equity that you have built in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.
Regardless of your reasons for wanting to refinance your existing mortgage, Apex Home Loans is interested in helping you make a decision that works best for you. Not only do we present our customers with spreadsheets outlining the various programs available, but we also continuously monitor rates to alert our customers of interest rate changes and help them refinance at the best possible time.
Apex will also review the terms of your existing mortgage with attention to your refinancing goals, and with your help, find a plan the best fits your circumstances. First, it will be important for us to learn a few basic things about your housing/financing situation to best serve you. Depending on how long you plan to stay in the home, for example, we can help determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. Apex will also want to know what the current property value is, how much equity you have built, and what your current credit score is.
Many homeowners are concerned that they may not be able to refinance in light of their home value declining. Special loan programs are available for exactly this situation. Contact us to find out if your current loan qualifies for one of these programs and to see if you can still take advantage of a refinancing opportunity.
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