Top 4 Reasons you need to refinance your home
It’s important that everyone understands their financial situation and objectives – especially when you’re looking at your mortgage. That’s why it’s important to consider refinancing your mortgage, if it makes the most sense to do so. If you’re not sure whether to look into the refinance option, consider four these reasons:
1. Lower your monthly payment
If the interest rates happen to be lower now than when you originally financed the home, your monthly payment will decrease. While the interest rate may not have decreased by much, it’s important to note that even a 0.5% decrease can add up to thousands of dollars saved over the term of the loan.
2. Build faster equity in your home
If you’re in a position to make a higher monthly payment on your mortgage, consider refinancing your mortgage to a shorter term – which can add up to serious savings. By paying down a higher percentage of your loan, you’ll build more equity in your home—faster than if you were to pay over a longer term.
3. Maximize your credit
If you’ve been making your monthly mortgage payments on time, there’s a good likelihood that your rating has improved – which means a better interest rate on loans (like your mortgage). By refinancing your mortgage, you’ll capitalize on the reduced interest, lowering your payment and total cost of the loan.
4. Cash-out for debt repayment
Using a cash out refinance option can help tap into the equity in your home that has built up during the term of your loan. By refinancing this way, you’ll be able to access the funds in your home’s equity and use it toward repaying your debt, sending a child to college or making any needed renovations on the home.
Have you refinanced your home? Are you looking for ways to save each month? Perhaps now is a good time for us to talk. Call me today and let’s see how we can help you, 08 9300 0626.