Three Reasons Why You Should Refinance Your House
Three Reasons Why You Should Refinance Your House
Every homeowner gets the occasional letter in the mail about refinancing their house. While you usually throw these letters directly into the trash without giving them much thought, know that there are benefits to refinancing that you may not be aware of. Consider the following three reasons to refinance.
Better Interest Rates
Have you had your mortgage for quite some time? Chances are that you are paying a very high interest rate compared to what current rates are. Over the past 10 years, 30 year fixed interest rate mortgages have been as high as 6.63%. In comparison, a current interest rate for the same type of mortgage is around 4.0%.
You can also benefit from better interest rates if you received an …show more content…
This is great for homeowners that have changed their mind and see themselves staying in their home for the foreseeable future.
Receive Extra Cash
Do you find yourself in need of a lot of cash and don’t have it on hand? Thankfully, the equity you have put into your home can be taken back through refinancing.
The way a refinancing works is that your home will be appraised to determine the current value. It may have gone up over the years if home values have raised, or gone down in value if prices have fallen. The value of your home will be the amount of money you can receive from refinancing, which will then be paid back through mortgage payments.
While there is no doubt that refinancing your home to use the money as a loan will cost you more over the years, it may be the only option available to you. For example, you may be looking to remodel your home and need the extra cash for construction costs. You may have unexpected debt that suddenly needs to be paid off. No matter what the situation is, you can always borrow your home’s equity through
Every homeowner gets the occasional letter in the mail about refinancing their house. While you usually throw these letters directly into the trash without giving them much thought, know that there are benefits to refinancing that you may not be aware of. Consider the following three reasons to refinance.
Better Interest Rates
Have you had your mortgage for quite some time? Chances are that you are paying a very high interest rate compared to what current rates are. Over the past 10 years, 30 year fixed interest rate mortgages have been as high as 6.63%. In comparison, a current interest rate for the same type of mortgage is around 4.0%.
You can also benefit from better interest rates if you received an …show more content…
This is great for homeowners that have changed their mind and see themselves staying in their home for the foreseeable future.
Receive Extra Cash
Do you find yourself in need of a lot of cash and don’t have it on hand? Thankfully, the equity you have put into your home can be taken back through refinancing.
The way a refinancing works is that your home will be appraised to determine the current value. It may have gone up over the years if home values have raised, or gone down in value if prices have fallen. The value of your home will be the amount of money you can receive from refinancing, which will then be paid back through mortgage payments.
While there is no doubt that refinancing your home to use the money as a loan will cost you more over the years, it may be the only option available to you. For example, you may be looking to remodel your home and need the extra cash for construction costs. You may have unexpected debt that suddenly needs to be paid off. No matter what the situation is, you can always borrow your home’s equity through