Three Ways to Refinance Your Mortgage
It is incredibly common to refinance your mortgage for numerous different reasons. Quite simply, some may want to pay less on interest by refinancing to a better rate. This is highly common, as is refinancing to a fixed-rate.
Refinancing to a better rate is a method to potentially shave thousands of dollars off your loan. Instead of spending your money on interest, you’ll be able to put it towards something more long term such as saving or invest it. Although, it must be noted that this is not a free service. Refinancing involves some of those same fees you paid when you originally got your mortgage: loan origination fees, appraisal fees and escrow or title fees are included. Although, you can still save money in the long run through refinancing.
Secondly, you can switch your adjustable rate mortgage to a fixed rate mortgage. You may realize that you would prefer consistency and financial stability. Maybe the market has been too up and down and you are no longer enjoying the differing rates from month to month. Switching to a fixed rate mortgage can resolve that for you.
Lastly, if you’d like to pay off your mortgage sooner rather than later, you can shorten the terms of your mortgage to get a shorter length. In this circumstance you’ll want to be sure that you can afford those higher monthly payments. Contact your loan officer if you’re interested in refinancing.