When you’re looking to save money on your current mortgage, consider refinancing your home. But before you take the plunge, make sure that refinancing is the best option for your family. The staff at Fairway Independent Mortgage Corporation in Edina, MN, wants to make sure you understand when the time is right to refinance your mortgage.
3 Occasions to Think About Home Refinancing
You Get a Lower Interest Rate
When you refinance a home loan, you’re essentially paying off your first mortgage and taking out another loan with different terms. If your current mortgage has a higher interest rate than the current market standard, speak to a mortgage consultant. If you secure a lower interest rate, you’ll pay less over the life of the loan, saving you both on the monthly payment and the total amount you pay the bank.
Your Loan Term Decreases
If the industry’s interest rates are lower than your current mortgage, you may be able to secure a loan with a shorter term without significantly increasing your monthly payment. This is a perfect choice for homeowners looking to pay their loans off faster while also taking advantage of a lower overall interest rate.
You Need to Lower Your Mortgage Payment
When interest rates drop, refinancing your home can help reduce your monthly mortgage payment. Remember, part of your mortgage payment goes toward the interest on the loan. The lower the interest rate, the lower your interest payments. This can significantly reduce your monthly payment and help free up cash for other expenses, whether you’re preparing for your child to go to college or want to remodel your kitchen.
If you’re looking to refinance your residential mortgage, contact the mortgage consultants at Fairway Independent Mortgage Corporation. Visit their website to learn about their refinancing options and call (952) 797-6032 to schedule an appointment.