Refinancing your home is the act of replacing your existing loan with a new one on the same property. So what are the benefits of doing this? As a homeowner, how do you know if refinancing is right for you?
First off, you know you want to stay in your home and don’t want to move in the near future. Secondly, you may be looking to make some financial changes to your current lifestyle, and refinancing your loan could give you the freedom to do this without changing your address. There are a few different reasons why someone would consider refinancing:
You are looking for a lower rate. If you want to lower your interest rate, refinancing may help you find a loan that meets your current needs and lowers the amount you pay in interest over the life of the loan.
You want to lower payments and consolidate debt. Refinancing may be able to help lower your monthly payments. Debt consolidation may simplify your finances by combining higher interest credit card payments into one convenient payment and potentially saving you money on monthly interest payments. You want to remodel your home. If you’re thinking of remodeling your house, access to your available home equity may help you finance the construction.
You want to get cash out of your home. You may qualify to get cash out through refinancing of your existing mortgage. You can use the cash for a number of different things, like investments, second property purchases, vacations, emergency funds, or paying off higher interest-rate debt.
Think about these points and talk them over with your Relationship Manager to see if these align with your goals.