Refinancing could be right for you if you are looking to reduce your monthly payments, shorten the length of your loan, convert equity to cash, or convert an ARM to a fixed rate.
In addition to saving money, refinancing is a way to utilize your equity without selling your house. You can convert that equity into cash for home improvements, debt consolidation, paying for college, financing a vacation home, or just about anything.
- Capitalize on lower interest rates
- Local, personalized service throughout process
- Reduce monthly payments
- Convert ARM to fixed rate
- Local decision-making
- Fast decisions and smooth process
- Closing Costs
Keep in mind there are closing costs associated with refinancing. These costs can be rolled into the mortgage. This greatly lessens how much you'll need to bring to closing, but this also means you are adding to the principal loan amount.
To determine if you will be better off refinancing for the long-term, determine how much you will save per month by refinancing. Calculate how many months it will take, based on these savings, to equal the closing costs. That is your break even point. If you will be in the home at least that long, you come out on top.