Three Reasons to Refinance Your Mortgage Today While Rates Are Low
Article by Willard Silva
Before mortgage rates start to rise, homeowners should think about the benefits of refinancing now. While it’s true that these rates are amongst the best ever available, they will certainly not stay here forever. Unfortunately, a large number of homeowners will probably put off refinancing their mortgage and will therefore miss out on some tremendous savings. There are lots of reasons to refinance. Scaling back your monthly mortgage rate can seriously effect home loan payments. If you had bad credit when you bought your house, and you have since cleaned it up, you should be able to significantly reduce your interest rate. Getting a mortgage is a way to raise your credit record. So if you were barely able to get a mortgage before, and you have been doing well, you should absolutely look at refinancing to a lower rate today. When mortgage interest rates were higher, a lot of home owners opted for Adjustable Rate Mortgages because the rates were lower. While people with ARM loans are also benefiting from today’s low rates, these rates aren’t guaranteed to stay. If and when interest rates go back up (and they will) so will the rates (and payments) for people still on an adjustable rate mortgage. To avoid your mortgage payments going up again, refinance to a low, fixed rate mortgage where your payments will stay the same for the life of the loan no matter what happens to interest rates. Milk Cash-Out Refinancing: A cash-out refinance may be a particularly good option for your mortgage refinance. With a cash-out, you can not only reduce your interest rate, but you can borrow some of the equity in your home. You’ll get a chunk of money when you close your loan. Once you get the money you can use it for what you want, from paying off high interest credit card debt or student loans, or going back to school or sending a child to school, or for a home remodeling project, or even to take a long overdue vacation.If you do decide to refinance your home mortgage, you can find a lot of good information at Cincinnati Home Mortgage Help.
About the Author
Willard Silva writes regularly about finance related topics. I hope you enjoy this article.