Lower your interest rate.
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save you money on financing fees.
Build equity faster.
If you are in a position to make higher monthly payments due to an increase in salary or another good fortune, you may want to switch from a 30-year loan program into a 15- or 20-year loan structure. This enables you to build equity more quickly and save a tremendous amount of money on financing fees.
Change your loan program.
Some homeowners who start out in an Adjustable-Rate Mortgage (ARM) find that they would like to switch to the stability of a fixed-rate mortgage at some point. An ARM may have been the most attractive rate and loan package when you first financed your home, but Apex can provide you with loan comparison charts to find out if you can save money with another type of loan program that might better suit your current situation. For help deciding read Fixed-Rate or Adjustable? 5 Questions to Help You Decide checklist.
Your credit score has improved.
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. Apex can review your current credit score, evaluate the terms of your existing mortgage, and provide options for other loan programs that could not only reduce your monthly payment but also save you money on interest fees paid over the life of the loan. If you’d like more information on improving your credit, be sure to read their Guide to Understanding Credit.
Take advantage of the equity you have established.
A cash-out refinance allows you to tap into the equity that you have built-in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.
Article repost with permission from Apex Home Loans.
