Not all of our customers are first-time homebuyers. The Fusaro Group also helps with mortgage refinancing.
Refinancing means replacing an existing mortgage with another mortgage under different terms. There are certainly a variety of benefits to refinancing. However, you should always take the time to weigh the pros and cons of your personal situation before signing any paperwork!
Here are five reasons a different loan could turn out to be the best thing for your family and your budget.
- Shorten your loan’s term.
Just because you signed onto a 30-year loan doesn’t mean you have to suffer with all of its restrictions for so many years. It is possible to refinance down to a 20- or a 15-year loan. Your monthly payments will rise slightly, but the amount of interest saved over the shorter life of the loan is significant.
- Lower your interest rate.
Across Northern Virginia and the rest of the nation, interest rates are at historic lows. This trend could change at any time, so even a reduction of 1-2% of your mortgage’s interest rate is worth the effort to refinance. Your budget will be thankful for a lower monthly bill.
- Convert from an adjustable-rate loan to a fixed-rate loan.
The low interest rates are great for homebuyers now, but there is no guarantee they’ll stay that way. If you have an adjustable-rate mortgage (ARM), refinancing into a fixed-rate mortgage will protect you from higher interest rates in the future. A fixed payment is also easier to plan for in your monthly budget.
- Consolidate debt.
It is possible to consolidate your various loans into one monthly payment. This is definitely an option to consider if we can reduce the interest rate on the loans borrowed from another source.
- Cash out your home’s equity.
Another option in refinancing is to tap into the equity that has built up in your home. This is usually an option for homeowners who may want to start a business, send a child to college, make improvements to the home or pay off loans with high interest rates.
Depending on what you are trying to achieve, refinancing your mortgage loan can help meet your financial goals of lower monthly payments and a shorter lifespan of debt. Talk to the Fusaro Group today about your options!