Reasons Why You Need to Refinance Your Mortgage
Thinking About Refinancing? Contact Home Financing Center!
Life isn’t always smooth, and it always has a way of changing things. For example, you may have purchased a house already, but your financial situation, lifestyle, or family structure may have changed. In that case, a refinanced mortgage is another loan that comes in handy to help you settle down better. Mortgage refinancing means shifting your loan from your earlier lender to a new one.
Reach out to Home Financing Center in Miami if you need better flexible features, interest rates, and more. However, before that, you might need to learn several reasons why refinancing a home loan is good for you.
Exciting Flexible Features
One of the most outstanding features of home refinancing is repayment flexibility. With this loan, you get to settle your interest once a month. Suppose your income fluctuates in the future, you can avoid dragging your mortgage payments behind. This makes it simpler for you to fit everything into your budget. That extra cash you save every month can be channeled to other vital areas that need more money.
Lower Interest Rate
This is another crucial reason why you should consider home refinancing. Why keep on paying higher when you have a chance to reduce your interest rates? This saves you money on your monthly payment and the interest you pay over the remaining loan period.
Since the payments are lower, it means you have more money with you. What is more, you have more sustainable savings that you can use as an emergency fund or investment.
Shorter Payoff Time
You would love to get off the hook and invest in something else, right? Refinancing with Home Financing Center gives you a shorter repayment period, allowing you to invest in new opportunities.
It is vital to note that shifting to a 15-year loan from 30-years raises you monthly payments. However, if you can afford the shorter agreement, you’ll save a lot in the long run. Furthermore, you will be done repaying your mortgage in 15 years.
Higher Potential to Take Equity Out
If home prices keep rising in your area, it means that your property value is also increasing! This means that you have more equity, which gives you a better opportunity if you have insured your mortgage with the Federal Housing Administration (FHA). Let’s say you hold up to 20% equity, you can easily refinance to a conventional mortgage and end up saving on mortgage insurance.
Find a reliable loan lender in Miami at Home Financing Center. We help our customers save thousands of dollars through our customized refinancing. Talk with our loan consultant to review your options and help you make an informed decision.