How to Know When You Should Refinance Your Mortgage
During difficult financial times it’s all too easy to worry about putting food on the table, as well as keeping a roof over your head. Stress is not good for your overall health and so this may be a good time to sit down and take a proper look at your finances.
“When should I refinance my home?” is commonly asked, so here are a few pointers that could mean the New Year will be the beginning of a new financial time for you and your family – one that is free of worry.
Is your mortgage interest rate higher than friends’ and neighbors? If you closed on your mortgage more than five years ago the chances are that you could be paying more out than you need to be. 1% difference in interest rates could mean a potential saving of thousands of dollars over the term of your mortgage.
Do you want to lower your monthly outgoings? It may be that you want to save for a vacation or new car, or simply want a little extra left in the bank at the end of the month. Refinancing your mortgage could give you the opportunity to pay the loan off over a longer term, as well as reducing monthly payments.
Is your home in need of a little tender loving care? Would you like to repair the porch or build a workshop? You are probably asking yourself “should I refinance my mortgage to borrow from the available equity in my home?” This may be more viable than trying to save the money to pay for repairs.
Do you have other debts you would like to consolidate? Are your monthly credit card bills putting you in fear of opening the mail? By refinancing your home you will be able to release funds to pay off high-interest debts – this will give you peace of mind as you will know what your monthly outgoings will be.
Questions? We’re here to help! Contact us today.
The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.