Learn about the advantages of refinancing your mortgage.
Many St. Louis home owner’s have refinanced their mortgage as interest rates slowly tumbled downwards. This can be a money saving option. What are the advantages of refinancing your mortgage? When is the right time to refinance your mortgage?
Refinance Your Mortgage When Interest Rates Are Low
Refinancing your mortgage can lower the interest rate and therefore the monthly payments. You will reduce your monthly expenses and potentially save money on the life of the loan. To gain the most financial benefit of refinancing, consider changing the terms of the loan, such as a 15 or 20 year term. This will allow you to still finish paying off your home in the time projected and get the benefit that a lower interest rate will offer you.
Refinance Your Mortgage When the Value of Your Home Rises
When your home’s value increases, the equity can be used to fund major home renovations. It may be easier to budget one loan instead of two. Refinancing to improve your home and increase its value may make sense, especially when interest rates are considerably lower. You may then be able to recoup the costs when it comes time to sell the home.
Working With the Sean Z Mortgage Team
There are several options to consider when it comes to refinancing your home loan. Speak with the Sean Z Mortgage team at USA Mortgage about your short-term and long-term financial goals. We will help you have a clear understanding of your options, making sure you get the loan that is going to work best with your needs.