Five great reasons to refinance your mortgage with Fairway
Interest rates are still lower today than they have been in years, and there is no time like the present to refinance your home mortgage loan. Chances are, if you have not refinanced in the past few years, your interest rate is hovering around 5% or more – that means that you could possibly be saving hundreds of dollars a month on your mortgage payment with the right home loan.
Why should you refinance your home mortgage?
There are FIVE reasons why this can be a wise step to take:
- You can reduce the interest rate (and, thus, interest costs) by financing at a lower rate. This is a primary reason for refinancing. Depending on the circumstances, you can save a lot of money!
- You can extend the repayment time thus reducing the monthly mortgage payment. This increases your cash flow. That money can then be used to pay off high-interest debt (e.g., credit cards, school loans).
- Reduce your payment by changing from a variable-rate to a fixed-rate loan. This frees you from the sometimes expensive interest rate/payment fluctuations that can occur in a volatile real estate market.
- Rather than extending the term, you may decide to shorten the term and reduce the interest rate – for example, moving to a 15-year fixed rate. This may not increase your payment much and will still allow you to pay off your house years sooner.
- Finally, if you are a homeowner who understands investing money, you can refinance in order to raise cash for investments, improve overall cash flow, etc.
As you can see, there are a number of advantages to refinancing your home mortgage! Today’s interest rates are making it impossible to say “no” to refinancing and rates will be going up this year. We recommend that you carefully assess your financial needs and meet with one of our loan officers who specializes in mortgage planning who can help analyze your current mortgage and give you advice you can trust about the best route for your financial future. At Fairway Independent Mortgage of the Carolinas, we make the process of refinancing easier than you’ve ever thought possible.