Many homeowners are taking advantage of low interest rates and finding themselves with more money in their pockets.
Refinancing May Be a Good Choice
- Homeowners wish to save money with lower monthly payments. Monthly payments are reduced with a lower interest rate or if the length of the loan is increased.
- Homeowners want to eliminate debt faster by paying off their mortgages quickly. Monthly payments increase, but homeowners save in the long run on overall interest payments on the debt.
- Extra cash is needed to pay off credit card debt or other loans. Mortgage interest is tax deductible, while credit card and other loan debts are not.
- Homeowners would like to consolidate two loans into one. If there is enough equity in the home, homeowners can combine loans into one loan. This situation is usually a better debt solution than combining payments on a first and second mortgage.
- Conversion of an adjustable rate mortgage (ARM) into a fixed rate mortgage (FRM). Staying in an ARM subjects a mortgage to variable interest rates, while obtaining an fixed rate mortgage allows homeowners to lock in at a lower rate for the life of the mortgage.
- Homeowners want to eliminate private mortgage insurance (PMI). Homeowners no longer have to pay PMI payments if the current loan balance is below 80% of the new appraisal for the home.
Now is the time to act on low interest!