Why Refinancing Should Be Included in Your Financial Plan For 2016
In layman’s term, refinancing simply means switching to a new mortgage deal on your home with the goal of getting lower interest rates and more flexible stipulations. But is it worth the legwork, the online and offline research, and the paperwork that lands on your desk? If you are one of those skeptics who is still caught between the fences, here’s 4 great reasons why you should be thinking of refinancing your home this year.
Current Mortgage Rates are Rising
If you have an adjustable rate mortgage plan, it can adjust higher than what is being offered by fixed-rate contracts. This is a sensible time to refinance your home to a fixed rate plan. Fixed rates are also ideal for homeowners who are planning to stay in the property for more than seven years.
Current Mortgage Rates are Falling
Falling mortgage rates are another reason why you should consider switching your loan contract. An adjustable rate mortgage will better serve you during times of market decline. It’s also a more feasible option for people who will only be residing in the property for no more than a few years.
Lower Your Monthly Rates
There are different ways you can lower your rate, the simplest being refinancing to a lower interest-bearing contract. The second way is by changing the mortgage terms. For example, if you are holding a 10-year mortgage plan, you can increase it to a 20-year plan, which effectively distributes the interest rates over an X period of time thereby lowering your monthly payments. Lastly, you can opt to refinance with an interest-only loan, which only requires you to pay the interest as the minimum amount for a specified period of time.
Take Funds from Your Home
The value of your property can be accessed similar to how you access funds in a bank account. You can access equity either via a home equity loan or a cash-out refinancing plan. Homeowners choose to get funds from their property when they need to finance a renovation project, which ultimately further adds value to the house.
Figuring out when you should refinance your home’s mortgage is the next tricky part. The decision depends predominantly on your personal situation including how long you will be staying in the property, what financial goals you have for your future, and the current and future conditions of the market governing mortgage rates. Use the four guidelines above as your foundation going further.
The information in this article is credited to Sente Mortgage, a home loan lender that specializes in refinance in Austin.
In a Car Accident? Here’s How to Find a Great Lawyer
If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...
Considering Therapy? Here’s a Few Common Therapy Techniques Explained
If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...
Top 5 Home Repairs You Should Never DIY
DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...
The Power of CBD Oil for Relaxation: How to Use it for Sleep and Stress Relief
If you’re struggling to get a good night’s sleep or feeling stressed, try CBD oil. CBD oil has a moment...
Benefits of Getting your Mobile Phone Repair
Mobile phone repair is a task that needs high skills and experience. That is why we always recommend users trust...
Great Ways To Clean To Get Your Security Deposit Back In Full
Moving is almost always stressful as there are tons of things to plan and do. Getting your security deposit back...
DIY Garage Door Repair: Tips and Tricks for Fixing Common Problems and Maintaining Your System
If your garage door needs to be fixed, wait to call a repairer. Many common problems can be fixed quickly...
7 Tips to Choosing the Right University for You
Are you considering continuing your education at university? If so, it can be overwhelming to decide which school is right...
3 Ways Loans from Credit Unions Are Different From Major Banks
If you’re in the loan market, you may wonder if a credit union is the right choice. Here are three...
The World of Coffee: Exploring the Aromas, Flavors, and Benefits of the World’s Most Popular Beverage
Coffee is one of the world’s most popular beverages, enjoyed by people of all ages and backgrounds. It’s also one...
New Driver? 5 Things to Consider When Looking for Driving School
When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...
Landscape Irrigation Systems: The Basics
If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....
5 Things to Look for in Luxury Hotels
When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...
Is There a Difference Between Commercial and Residential Concrete?
If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...
5 Tips to Find the Right Litigation Firm
When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...
Tech8 years ago
Creating An e-Commerce Website
Tech8 years ago
Design Template Guidelines For Mobile Apps
Business3 years ago
What Is AdsSupply? A Comprehensive Review
Business7 years ago
The Key Types Of Brochure Printing Services
Law2 years ago
How Can A Divorce Lawyer Help You Get Through Divorce?
Tech5 years ago
When To Send Your Bulk Messages?
Travel11 years ago
Who Else Wants Also Nfl Hat
Tech2 years ago
5 Link Building Strategies You Can Apply For Local SEO