5 Reasons to Refinance Your Mortgage
With the current economic conditions, everyone’s wallets are very tight. The upside to this economic downturn can be found in your mortgage payments to help improve your cash flow. Here are the five reasons to refinance your mortgage.
- Interest rates are currently at an all-time low, but when the economy starts picking up again, which it will, interest rates will continue to rise. So the longer you wait, the higher the interest rates will get. The lower your interest rate, the more cash you will have in your hands.
- With interest rates being this low, its a good idea to change your loan program. For those who has ARM(Adjustable Rate Mortgage), you should probably switch to FRM(Fixed Rate Mortgage) because it is highly unlikely that mortgage rates will be as low as it is today.
- With lower interest rates, you will have lower monthly payments. If you can maintain the same monthly payment, with a lower interest rate, you will be able to build equity faster.
- Refinancing your mortgage term from 30 year loan to 15 year loan might also be more affordable with lower interest rates. The lower your mortgage term, the faster you can pay off your mortgage.
- Your equity will continue to rise in a much faster rate, this will allow you to pay off your child’s college tuition, pay off credit card or buy yourself a nice vacation home you’ve always wanted.
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