3 Reasons Why Now May Be a Good Time to Refinance Your Mortgage
There’s a lot going on in the economy, and while most of it isn’t good news, there is still a silver lining: Mortgage rates are historically low.
For homeowners, that means refinancing is more attractive than ever, especially if financial times are tough.
Do you have a mortgage? If so, here are just a few reasons you might consider refinancing your mortgage right now:
- It could lower your monthly payment. If your current loan’s mortgage rate is higher than today’s rates, refinancing could lower your interest rate. That would mean a lower monthly payment and less in long-term interest costs, too. Keep in mind that your new rate will depend on your credit, how much equity you have in the home, and other factors.
- It might give you cash to cover your bills. Cash-out refinancing lets you replace your current loan with a new, higher-balance one. You then get the difference between those two balances in cash. If you’re having trouble staying financially afloat during these trying times, this quick infusion of money may be able to help you get by.
- It could help you cover home improvement costs. If you’re using your time in quarantine to fix up your house, make repairs, or even full-on renovate your property, a cash-out refinance could give you funds for this, too. With cash-out refinancing, you can use your lump-sum payment for whatever purpose you need.
Find out if you could benefit from refinancing your mortgage. Contact us today to receive a complimentary mortgage review.
If you are considering a refinance, in many cases, you’ll follow a mortgage process similar to the one you did with your original loan — complete an application, submit documentation, loan processing, and closing. You’ll also need to submit to a credit check, your employment will need to be verified, and you will probably need an appraisal.
Refinancing will include closing costs. Fortunately, in certain cases, some of these costs can be rolled into your loan balance and paid off over time.
Could a Refinance Help Your Household?
Are you considering refinancing your mortgage loan to ease the financial burden during these difficult times? Just want help covering the costs of home improvements? Get in touch with Embrace Home Loans today. We’ll walk you through your options.