For when it might be time to get a new mortgage
There are many indicators that the time is right to refinance your home. Let’s look at the possible reasons why it may be time to call your Investors Home Mortgage professional.
An increase in your home’s equity:
If your home has increased in value, your home’s equity can be used to pay off other debts or improve your home. This is called a cash-out refinance.
A reduced interest rate:
With interest rates near historic lows, now is a great time to refinance your home. By taking advantage of low rates you can reduce your monthly payments, giving you the ability to manage other debt or pay down the principal of your home.
Reduce your term:
Lower interest rates produce the possibility of switching to a shorter-term mortgage. With a shorter-term, you’ll pay off your mortgage loan sooner and, with a lower rate, you may be designating more of your payments towards your principal balance.
Switch to a different loan type:
If you currently have an Adjustable Rate or a One-Step Loan, a reduced fixed rate may be desirable for you. Switching to a fixed rate will guarantee more stability in your mortgage payment.