In the present moment while writing this blog, mortgage rates are officially at their lowest point in almost two years, according to Freddie Mac.
For would-be buyers, that can mean a more affordable entry into homeownership. But for existing homeowners? It can be the ticket to serious savings and a slew of both short- and long-term financial benefits.
Do you currently own a home? Then you might want to consider refinancing your existing mortgage loan. Here are just a few of the financial goals it could help you achieve:
1. Save (or invest) more money
With today’s low rates, there’s a high chance you can refinance into a lower interest rate — meaning lower monthly payments and less interest paid over the life of the loan. Put those savings toward retirement, invest them in the stock market, or stow them away in an interest-earning savings account — the choices are endless.
2. Make a large purchase
If you have a big expense coming up — like your child’s college tuition or that new car you need, then a cash-out refinance can help. With rates as low as they are, you might even be able to do it without changing your monthly payment much at all (or maybe even decreasing it).
3. Improve your house
Is your house showing its age? A cash-out refinance could help you finance the renovations and repairs it needs to be like new again. As an added bonus, if you choose the right projects (see this ROI report from Remodeling magazine), it might even improve your home’s value — and the profits you could potentially net from it down the line.
4. Consolidate high-interest debt
Have lots of credit card debt to your name? Outstanding medical bills? A student loan you want paid off? Refinancing may be able to help you consolidate these bills and lower the interest you’re paying at the same time.
5. Free up cash flow
By refinancing to a lower rate or extending your loan’s term/payments (or both), you could significantly lower your monthly mortgage payment and, subsequently, free up serious cash. This can be helpful if you just had another child or are just dealing with extra expenses in general.
Is a Refinance Right for You?
Refinancing your mortgage loan can come with serious financial benefits — but it’s not right in every situation. Want to see if a refinance could help you achieve your goals? Then connect with an Embrace loan officer today. We’re here to help.