Connect with us

Investments

Why Refinancing Should Be Included in Your Financial Plan For 2016

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.

Why Refinancing Should Be Included in Your Financial Plan For 2016

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.

Informational Credit:

 The information in this article is credited to Sente Mortgage, a home loan lender that specializes in refinance in Austin.

Recent Posts

What Do Business Consultants Do What Do Business Consultants Do
Business3 days ago

What Do Business Consultants Do?

Business consultants can be a huge help to your business – or a big expense that doesn’t give you the...

Careers You Can Start Without A 4-Year Degree and Benefits Of A Degree Careers You Can Start Without A 4-Year Degree and Benefits Of A Degree
Education4 days ago

Careers You Can Start Without A 4-Year Degree and Benefits Of A Degree

Among Baby Boomers and members of the Greatest Generation who got to get a college degree, career success and high...

3 Improvements To Add To Your Home 3 Improvements To Add To Your Home
Home Improvement1 week ago

3 Improvements To Add To Your Home

If you are getting a little bored of your home, you should start looking at things that you can do...

Rebuilding Your Life After A Personal Injury Incident Rebuilding Your Life After A Personal Injury Incident
Law2 weeks ago

Rebuilding Your Life After A Personal Injury Incident

After you have suffered a life-altering experience following a personal injury incident, you will begin the process of rebuilding your...

Best Ways to Improve Your Career Best Ways to Improve Your Career
Business3 weeks ago

Best Ways to Improve Your Career

Working on improving yourself is a continuous process. One that chisels you to perfection every time you do it. It...

New to Golfing? 4 Etiquette Tips You Need to Know New to Golfing? 4 Etiquette Tips You Need to Know
Entertainment1 month ago

New to Golfing? 4 Etiquette Tips You Need to Know

Golf is a sport that is governed by some very specific etiquette rules. If you are just taking up golf,...

How to Manage Scoliosis In Adult Period How to Manage Scoliosis In Adult Period
Health1 month ago

How to Manage Scoliosis In Adult Period

We always start thinking about our health, and the importance of it, once something goes wrong. When that inevitably happens,...

Simple Ways To Stay Warm This Winter Simple Ways To Stay Warm This Winter
Lifestyle1 month ago

Simple Ways To Stay Warm This Winter

You shouldn’t have to compromise on style for warmth, which is why we have put together this guide on how...

Staying On Schedule When Traveling With Family Staying On Schedule When Traveling With Family
Travel2 months ago

Staying On Schedule When Traveling With Family

There is a lot of planning that goes into traveling with your family, especially if you are trying to stick...

Do You Need A Lawyer When Filing For Divorce? Do You Need A Lawyer When Filing For Divorce?
Lifestyle2 months ago

Do You Need A Lawyer When Filing For Divorce?

Since divorce is a relatively common legal proceeding, some couples opt for a DIY approach. They decide to download the...

Unique First Home Gifts For Your Loved Ones Unique First Home Gifts For Your Loved Ones
Lifestyle2 months ago

Unique First Home Gifts For Your Loved Ones

If one of your loved ones is moving into their first home, we have the perfect gifts for you. Each...

Should Your Business Offer International Shipping? Should Your Business Offer International Shipping?
Business2 months ago

Should Your Business Offer International Shipping?

In today’s world, many businesses have the opportunity to reach a global audience and find new ways to grow. But,...

Why Isn't Your Company Website Seeing Traffic? Why Isn't Your Company Website Seeing Traffic?
Marketing3 months ago

Why Isn’t Your Company Website Seeing Traffic?

Are you hooked? Do you check your website’s Google Analytics frequently, only to be disappointed every time you see it? ...

Resources and Assistance For The Parents Of Children With Autism Resources and Assistance For The Parents Of Children With Autism
Education3 months ago

Resources and Assistance For The Parents Of Children With Autism

Raising a child with autism can be a challenge. For most neurotypical people (i.e., those who do not have autism),...

How to Improve Your Company Parking Lot Safety For Your Employees How to Improve Your Company Parking Lot Safety For Your Employees
General3 months ago

How to Improve Your Company Parking Lot Safety For Your Employees

When your workers park in the corporate lot, you want them to feel comfortable and protected. Your staff shouldn’t have...

Categories

Archives

Trending