Refinancing your mortgage is kind of a big deal. We have a list of 10 reasons we think refinancing might be your next best move.
- If your credit score is on the rise. If your credit score has risen by at least 100-points you could see a significant cut to your mortgage interest over the life of your loan.
- If interest rates are falling. Interest rates tend to fluctuate with the constantly changing economic conditions, Federal Reserve decisions and monetary policy – if interest rates are on the decline – it could be a good time to get a refinance on your loan.
- If you can shorten the loan term. If you can get out from under your home mortgage sooner by refinancing, it may be a good time to do so. Short term loans tend to come with a lower interest rate – which means you will accrue less interest, over a shorter period of time, making it a better option all around.
- If you can lock in a fixed rate. Lock in a fixed rate and your rate will never adjust as compared to an ARM rate which will adjust each year – pulling your payment up or down with it.
- If switching to an ARM makes sense. If interest rates are trending lower dumping your fixed interest rate might actually be the smarter bet. It is up to you, but if the rates rise, you may have to switch back to a fixed rate loan at some point.
- If you have some home equity. If you have been making payments for a few years and have equity built up, you may be able to find a refinance that will allow you to unlock the equity and put it to work for you.
- If you can get rid of your PMI. Mortgage insurances are an additional fee that allows the lender some protection should you default. When you refinance you could provide yourself a way to ditch that pesky extra payment.
- If you can get rid of secondary mortgages. If you have picked up a secondary mortgage at some point, refinancing may be a good way to get rid of it. A refinance can give you a way to consolidate both loans into one and pick up a lower interest rate while you are at it.
- To buy out a co-owner. If you are getting a divorce, leaving your boyfriend or girlfriend or even just want to take your dad off the home loan – this can be a good reason to get a refinance.
- If you can consolidate other debt. If you have high credit card balances or other loans at high interest rates doing a cash-out refinance can significantly reduce your debt – just be careful about it. If you end up struggling to make your mortgage payments, or don’t change your spending habits that got you into debt in the first place, you could find yourself in trouble.
We do not refinance loans at Eagle Connect Fund, but you can work with one of our partners to get your home refinanced.