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5 Important Reasons to Refinance NOW

A refinance is one of the most important tools in the mortgage industry.  It’s a way for homeowners to keep up with changing interest rates and keep their home affordable.  Since nobody likes paying more than they have to for their mortgage, we wanted to give you 5 important reasons to Refinance Now.

 Your Interest Rate Is Too High

For the past few years, interest rates have been at historic lows.  If you have a mortgage that’s 7 years old, you’re probably paying too much every month on your mortgage.  Lowering your interest rate is really the top reason to refinance your mortgage.  Since this is likely the largest debt that you have, decreasing the interest that you pay has a huge effect on your finances going forward.  Just cutting it down one point can mean thousands of dollars a year back in your pocket.  That goes hand-in-hand with the next one…

Lowering Your Monthly Payment

Refinancing to a lower rate or getting a new mortgage will help you lower your monthly payment and help you with bills and expenses.  You can also extend the loan terms to spread out the debt and further decrease the price.  Our team is able to offer different term mortgages, so you aren’t locked into a 15 or 30-year mortgage.  You can get a 22-or 27-or 19-year mortgage and really make the payments what you can afford without stretching it out all the way to 30 years and repaying all of the interest.

Stop Paying PMI

If you have mortgage insurance and have an LTV (Loan-to-Value) that is under 80%, you need to refinance out of it to get rid of that PMI.  Mortgage insurance is a great feature to help homeowners with less savings buy their home, but once you’ve established that 20%, you’ll want to cut that PMI off as soon as you can – it’s just a waste of money after that.

A refinance can put that money back in your pocket.

Home Improvements or Repairs

You can use a cash-out-refinance to get a loan against the equity in your home to take out cash for repairs or improvements to the property.  You can borrow up to 80% of what your home is worth.  So if you owe $200,000 on a $300,000 home, you can borrow $40,000, making the loan value 80%.  A cash-out refinance is essentially a new loan, making a single mortgage payment.

You Have an ARM

If you have an Adjustable Rate Mortgage, you’ve been sitting pretty these last few years, with interest rates so low.  However, these low rates won’t be around forever, and your gravy train will run off the tracks as soon as interest rates rise.  If rates are at historic lows, not likely to get much lower, doesn’t it make sense to refinance to the lowest rate you can and lock it in?  Don’t get hit with that ARM balloon payment or get punched in the gut by rising rates.

Call the best mortgage lender, The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, or Nashville at (615) 810-8555.  You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you.  Nobody gets lower mortgage rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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