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| Refinancing Your Mortgage |
There are several reasons that will help you determine if it is time
to refinance. The main reason to refinance is, of course, to
save you money. You may be able to get a better rate than you
are currently paying and reduce your monthly payments. Even
a small reduction in your interest rate can add up to significant
savings in the long run.
Another reason to refinance your home is to reduce the term of your
mortgage. In many cases you can switch from a 30 year mortgage
to a 15 year mortgage with a lower rate. The overall monthly
payments will increase, but you will completely own your house in
half the time! Even if you are unable to refinance for a 15
year loan, your mortgage company may be able to create a custom loan
for another specified number of years such as a 25 year loan.
A third reason to refinance your house would be to get cash back.
Ideally this extra money would be put towards higher interest debts
such as credit cards or other loans. When you refinance in this
fashion, you will still have the same monthly payment.
Should you refinance? The decision to refinance is weighing the savings
of a lower monthly payment to the costs associated with refinancing.
Sometimes you may be able to refinance without incurring any charges,
but typically this will result in a slightly higher rate (which may
still be below the rate you are currently paying). You also
need to factor in the time you expect to stay in your current home.
If you do not plan on staying in your current house for a number of
years, your costs to refinance may not be recoverable.
Contact InterfaithCapital and we will guide you every step of the
way!
Pre-Qualify now
and determine your eligibility, or
Apply now! Go straight to the application.
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