If you are buying your home, you’ve probably heard of refinancing. Do you know what refinancing is? Do you know what the benefits are? You might be able to greatly benefit from refinancing and just need more information. Here are three reasons why refinancing might be beneficial to you.
Pay off Early
One big reason people refinance is to let them pay it off more quickly. If you’re currently in a 30-year mortgage, refinancing to a 15-year mortgage will likely decrease your annual interest rate. While your payments will go up, you will be able to pay it off in half the time. A finance company like Sun West Mortgage can go over your options with you.
Take Advantage of Lower Interest Rates
Depending on when you financed your home, interest rates may have been much higher. Your credit rating may have been much lower. Whatever the case, homeowners often refinance their mortgages to take advantage of lower interest rates. Many companies, like Sun West Mortgage, can aid you with this.
Deal With Unexpected Expenses
Unexpected expenses are a part of life. You get a leak in your house and you need your roof replaced. Your HVAC dies and you need a new system. Whatever the problem, if you have equity built up in your home, you can refinance or get a reverse mortgage and take advantage of that equity.
If you have a mortgage, consider these reasons for refinancing. If one sounds beneficial to you, contact a finance company today.