December 14, 2021 Submitted by Brian Cavanaugh
There’s a lot of chatter around the rises and dips in today’s real estate market. Though there’s been an increase in interest rates, they’re still lower than in past years, making now the prime time for homeowners to consider a mortgage refinance. Is a refinance right for you? Let us walk through a few of the benefits.
Take advantage of the lower interest rates. If today’s mortgage rates are lower than when the home was first purchased, a refinance could result in a reduction of monthly payments or shorter mortgage payoff timeline. Taking advantage of today’s low income rates can provide immediate savings to be invested in the future through debt consolidation. Locking in lower interest rates can help homeowners secure shorter or extended terms for mortgage repayment, depending on immediate or future goals.
Make mortgage terms to work for YOU. Today’s market presents the perfect time for homeowners like yourself to have a little more power over your mortgage terms. In today’s real estate market, lenders WANT to help you navigate the process and get the most out of your mortgage. A little more empowered than first-time homebuyers, owners with a little equity have the ball in their court to work out new terms.
Re-negotiate your ARM - Adjustable Rate Marketing. Adjustable rate mortgages are an attractive option for many first-time owners. They allow the option to take advantage of short-term rates and keep monthly payments low. For homeowners stuck in an adjustable rate mortgage that is now at a higher than market averages, refinancing could present a longer term schedule for mortgage payoff or switch to a fixed rate payoff mortgage.
Make future home investments with equity. Every homeowner has either a to-do list of nagging home renovations, or a “wish list” of upgrades that would help add value to the property. A cash-out mortgage refinancing can provide additional financial assistance for homeowners that can be used for everything from debt relief to renovations, retirement savings and more.
Lose the PMI - Private Mortgage Insurance. Many homeowners are required to purchase additional insurance as a condition in their borrower’s agreement. While this protects the lender from loan default, it doesn’t provide homeowners much protection. By eliminating private mortgage insurance when refinancing, a homeowner can save more monthly or pay the balance down faster.
Refinancing your mortgage can be a little overwhelming. But, it doesn’t have to be. If you’re interested in learning more about the process, and the benefits to you, let a local, trusted mortgage lender offer guidance and support.
Brian Cavanaugh (NMLS #441865) is a Hingham resident and Sales Manager with Mortgage Network, Inc. For mortgage refinancing information, current rates and more contact him at bcavanaugh@MortgageNetwork.com or visit his website at www.Brian-Cavanaugh.com