Mortgage refinancing allows you to boost your financial health and continue paying for a home that you love. The process also provides the opportunity to reorganize and reassess home loans so that you can get more control of your money. Below are a few reasons to consider refinancing this year.

Why Choose Mortgage Refinancing?

1. Get a Better Rate

Mortgage refinancing can get you a lower interest rate on your loan if the current average is lower than when you first applied. A reduction can lower monthly installments and save you considerable money in the long run, especially if you plan to live in the home for many years. Even if the rate is less than half of a percentage point, it is worth looking at refinancing, depending on the length of the loan.

2. Improve Your Credit Score

Refinancing can positively impact your credit score, as lower payments and rates often make it easier to stay on top of bills. It can also help you with debt consolidation, offering a chance to put all of your home loans into one low-interest account that you can pay down more easily. This, too, will improve your credit.

3. Pay Off Loans

Your mortgage refinancing may include the term length of the loan, which means you will pay off the house more quickly. The sooner you clear this line of credit, the less you will pay in interest. Paying off sooner may improve your financial standing and give you more money to put elsewhere, such as a retirement account. You also receive more equity without having to pay a significant amount every month.

4. Reorganize Owners

Changing the terms of your loan means you can even add or remove signers on the mortgage. Whether you are getting a divorce or you marrying someone new, you may want to change who is responsible for paying. Mortgage refinancing is a necessary step in shifting liability so that the loan correctly reflects ownership.

5. Change Mortgage Type

If you want to switch from an variable-rate to a fixed-rate mortgage, you must go through refinancing. When you first opened the loan, the low rates of an adjustable loan may have been the right decision, but they can also go up quickly without you noticing. Switching to a fixed-rate is more reliable and stable, helping you predict your bills more easily.

If you want to begin the mortgage refinancing process, contact Fairway Independent Mortgage Corp. - The Sharon Thompson Team in Foley, AL. Serving the state of Alabama since 1996, these mortgage lenders make the process stress-free for every client. Their streamlined techniques and personalized attention ensure you get the mortgage rates and loans you are seeking. To learn more about home loan options, visit them online. Call (251) 298-5304 to schedule a consultation.