Do you feel that it is too late to refinance? Chances are, it isn’t! Below is a list of 5 reasons why it is not too late to refinance.
- Take Out Equity (Cash-Out Refi) You can use the equity in your home to pay down or pay off debts that typically carry a higher interest rate like credit cards and student loans. You can also use that equity to invest back in to the market and purchase an investment property.
- Lower Your Repayment Term Although the 30-year mortgage has the lowest monthly payment, it doesn’t always make the most financial sense. Choosing a
lower term like a 20 or 15 year will allow you to pay off your mortgage faster!
- Get Rid of PMI As home prices steadily rise, you may now have enough equity to remove that annoying PMI. You can use that extra cash to pay towards your principal. If you still have less than 20% equity, you may want to consider lender paid PMI or LPMI.
- Fix The Rate on a HELOC If you have a second mortgage in the form of a home equity line of credit (HELOC) it might be a good idea to convert that into a fixed, closed-end mortgage. The rates on most HELOCs are tied to some index and as rates rise that index also rises, causing your interest rate to go up. Refinancing can help combine both your loans into an easy to manage, single, low-rate monthly payment.
- Convert Your ARM into a Fixed Rate As the Fed continues to raise interest rates, when your ARM resets it could do so at a very high-interest rate. With fixed rate mortgages still near historic lows, now is the best time to convert that floating ARM into a steady and stable fixed rate payment.
With that being said, call 855 549 7001 if you have any questions!