Or maybe you have an adjustable rate loan or a hybrid program and are considering locking in a fixed rate, avoiding any future rate swings. Interest rates have been historically low over the past several years but now might be the time to refinance out of your variable rate program and into the stability of a fixed rate loan. A fixed rate allows you to better plan for your future, knowing what your mortgage payment will be throughout the life of the loan.
Do you have a second mortgage? Maybe you took out a home improvement loan or an equity loan? While such programs have their own advantages, the rates on these subordinate liens will always be a bit higher than what a first mortgage will be. Many will find that consolidating a first and a second mortgage into one can lower the overall payments each month, saving on interest payments.
Finally, if refinancing does make sense, you might want to consider pulling out cash during the process. A cash out refinance allows you to replace your existing mortgage with more favorable terms while at the same time pulling out equity in the form of cash for any purpose. Pay off credit cards, student loans or any other higher interest rate credit with a low, fixed rate. To see if a refinance makes sense for your situation, let’s get together and discuss your options!