How to know when it’s time to refinance
If you’ve owned your home for a while you may have already thought about refinancing your mortgage.
Refinancing your mortgage in simple terms is when you get a new loan for your existing home, and pay off your first loan. Your new loan replaces the original loan.
Refinancing might help you get a better rate, lower your payments, set up different terms, or it could help you pay off your loan faster, or even pay off other debts.
If your financial situation has changed since your first home loan, then it’s a good time to consider refinancing.
Maybe your family earns more than when you first bought your home, or maybe you’re making less now and you want to take advantage of the equity you’ve built over the years.
Many homeowners consider mortgage refinancing as a great option for some of the reasons shared here:
- Lower my interest rate
- Reduce my monthly mortgage payment
- Shorten the term of my home loan, for a faster payoff
- Change or update the terms of my adjustable-rate mortgage
- Change from an adjustable-rate mortgage to a fixed-rate mortgage
- Switch to an interest-only loan to reduce my monthly payment
- Access the equity in my home by refinancing so I can take cash out
Refinancing can help you set up a new loan structure that better fits your current financial situation as well as any new goals you may have.
Our Preferred Rate Loan Advisors can help compare current rates against your existing loan, and see if it’s a good time to apply and get started on refinancing.