Explore Reasons To Refinance
When interest rates are low, you may hear friends and neighbors talking about refinancing. So what is refinancing, and when should you consider it?
Pay It Off Sooner
A substantial portion of each mortgage payment is interest that you are paying on your loan. If you can reduce the length of time you will take to fully pay off the loan, then it follows that you will pay less interest. If you want to pay your mortgage off sooner, check the math... the savings might surprise you.
Every month that you pay down your mortgage it's like depositing money into a big savings account. If you have a major expense coming up like sending kids to college, home repairs or medical expenses, you may want to consider tapping into the cash in your home.
Reduce Your Payment or
The most common way to lower your monthly payment is to refinance with a lower interest rate, and/or refinance with a longer-term loan (so, for example, if you have 20 years left on your 30-year loan, refinancing with a new 30-year loan reduces the amount you’ll be paying each month).