3 Reasons You Should Refinance Your Mortgage
As Naperville mortgage lenders many people approach us with questions about refinancing and if it's something that they should do. While this depends on your specific situation and whether or not it makes sense for you to do, there are many benefits that can come out of refinancing your mortgage.
As mortgage lenders we can help you determine if right now is the time to refinance your mortgage or not. We understand that people may have many questions. To help give you a better idea of when you might consider a refinance, here are 3 Reasons You Should Refinance Your Mortgage.
1. Change to a lower rate
The most common reason why people decide to refinance their mortgage is to change the rate they have on their current mortgage.
Your mortgage will have either an adjustable rate or a fixed-rate attached to it and, while each is different and has pros and cons, you need to select the type of rate that is best suited for you.
For example, some people prefer to know exactly how much they are paying each month and can budget accordingly so they will choose a fixed-rate (their rate is locked in). On the other hand, some may see the potential of paying lower rates in the long-run by choosing an adjustable rate, which changes based on what the benchmark interest rate at the time (fluctuates with the market).
2. Change the term of your mortgage
This usually goes together with the rate length on a mortgage and is mostly done at the same time when refinancing.
Switching to a longer term to decrease monthly payments or changing to a shorter term to save money in the long-run are the main reasons why people choose to switch the term of their mortgage. It all depends on your current situation, however, and what your goals are and how much you can afford in the short and long run.
Another popular reason why people opt to refinance is to pay off debts.
For example, you could use a refinance to pay off a credit card balance that would result in a lower interest rate on your credit card. Of course, this comes with the potential of paying more in interest because you would now have more debt on your mortgage once you transfer the credit card balance to it. This is something that you should carefully consider and talk to your mortgage broker about to see if it's a good idea to do.
When doing anything with your mortgage, it's always wise to consult a mortgage professional. As lenders we can help you decide whether or not it is the best thing for you to do at the time.
As Naperville mortgage lenders, we are proud to provide excellent service and are happy to answer are your mortgage and Naperville home loan questions. Contact us today!
The Marino Lending Team
630.788.7859 (Mobile) | 630.983.3604 (Office)
NMLS ID #209516 | License: IL #031.0002979
847.804.1059 (Mobile) | 630.806.2870 (Office)
NMLS ID #244399 | License: IL #031.0037907
815.757.6944 (Mobile) | 630.947.0562 (Office)
NMLS ID #1542842 | License: IL #031.0045066
651 N. Washington Street
Naperville, IL 60563