Even though the economic recovery remains sluggish, homeowners have reason to celebrate. According to the Mortgage Daily News, interest rates continue to hover around all-time lows creating the ideal opportunity for a refinance. Refinance applications are up 84.6% from 2011, indicating that homeowners are aggressively locking-in lower rates and decreasing their monthly payments.
If you have yet to take advantage of this rate environment, seriously consider starting the refinance process now. There are a number of benefits that come with refinancing your mortgage, such as:
Getting a lower interest rate: By refinancing, you are swapping a higher interest rate for a lower one, which can save you considerably on your monthly mortgage payments.
Switching your mortgage type: If you have an adjustable rate mortgage (ARM) and your rate is about to increase, refinancing will allow you to lock-in an extremely low rate that won’t change.
Build home equity faster: If you have the necessary income, consider refinancing from a 30-year fixed mortgage to a 15-year fixed mortgage, lowering your long-term interest charges.
Take cash out: A cash-out refinance allows you to pull equity out of your home in the form of cash, but you add to your principal in the process.
Contact an On Q Financial Mortgage Consultant today to review your financial goals and discuss your refinance options.