Now is the time to take advantage of low mortgage rates and refinance your existing loan. Rates have never been lower!
There are many reasons one would decide that refinancing is a good option:
Lower interest rate – This will reduce monthly payments and/or reduce the length of the loan.- Debt consolidation – Create one loan for all your monthly payments and may extend the life of the loan, but lower monthly payments.
- Reduce Monthly Payments – Extend the life of the loan to lower the monthly payment.
- Switch from variable-rate to a fixed-rate – This will reduce the risk of hitting the adjustment to a higher rate.
- Get Cash Out – Extends the length of the loan, but frees up cash.
Refinancing can help reduce monthly payments, with the condition to extend the life of the loan. Managing multiple loans can be made easier by consolidating multiple loans into one monthly payment.
Refinancing to get cash out may not help lower the monthly payment or shorten mortgage periods. It can be used for investments, credit cards, and home improvements. If the home equity satisfies the terms of the loan, you can refinance a larger amount and keep the remaining cash.
Read more about refinancing.