Why There’s Never Been a Better Time to Refinance Your Home
In such uncertain times, there is one thing we do know — there’s never been a better time to refinance. With an up-and-down economic forecast and many of us shifting to working from home, refinancing is an opportunity to capitalize on historically low rates and consolidate debt to keep some extra money in your pocket. Get in touch with us now to see if this is the right time for you to save some money when you need it most. Our team is still plugged in and ready to help — just grab your mortgage statement and schedule a call with Blue Water today.
What is Refinancing?
Refinancing is when homeowners take out a new home loan to replace their existing one. The new loan then pays off the initial mortgage loan. Depending on your goals, refinancing your home loan can reduce your monthly payments and help you realize significant, long-term savings.
Reasons to consider refinancing:
- Your credit has improved, meaning you may be able to get a better rate even if rates haven’t gone down.
- You have high-interest credit card debt you are looking to pay off.
- The equity in your home has increased and you might be able to get rid of PMI.
- Your financial situation has changed. Have you changed careers or received a salary increase?
- You’re looking to consolidate your other types of debt, like another mortgage, student loans or car loans.
- You’re thinking about making home improvements or repairs
- You want to take advantage of low interest rates.
Benefits of Refinancing a Home Loan
Refinancing presents a great opportunity to get a new mortgage that’s better suited to your current lifestyle and financial position. Some of the major benefits of refinancing include:
Reduced loan terms
Refinancing will also update your loan terms. This can mean moving from a 30-year loan to a 25-year loan so that you can pay off the loan and own your home quicker. By reducing your loan terms, you are also lowering the amount of interest you must pay your lender.
See Refinancing Loan Example #1 below
Lowered monthly payments
When you finalized your initial loan terms, you agreed on a specific interest rate (fixed or adjustable) attached to the borrowing amount. Refinancing involves lowering that interest rate, thereby reducing the amount of money you owe on the principal.
See Refinancing Loan Example #2 below
With lower monthly payments and a reduced interest rate, refinancing can bring substantial long-term savings. Plus, consolidating all your debts when you refinance can make it easier to manage your finances.
See Refinancing Loan Examples below
Is Refinancing Right for You?
There’s a lot to consider when it comes to refinancing. Most importantly, you should understand that it may not be an ideal option for everyone.
Blue Water Mortgage has helped countless homeowners refinance their mortgages and achieve long-term financial benefits. Contact us via the form on this page and we will help you determine if it’s the right step for you. Our loan officers will assess your information, crunch your numbers and get back to you shortly!