As a result of refinancing, your total finance charges may be higher over the life of the loan.
Refinancing. Stay Informed
After months of searching for the perfect home, you are finally able to call yourself a homeowner. Now with the key in hand, the responsibilities of owning a home and unpacking take precedence. As life begins to settle, we often forget one of the benefits of owning a home – the ability to potentially save money by lowering your monthly payment. Often times, homeowners forget to stay informed on the current interest rate environment that could allow them to obtain a lower rate, decreasing their monthly payment.
Gone are the days when borrowers are kept in the dark regarding matters which affect their personal finances. These days financial information isn’t an abstract set of static numbers published in the local paper each day, but rather they are a set of dynamic indicators published, and pushed, to mobile devices most people keep with them at all times. Macro-economic information, which affects not only potential borrowers but also current borrowers (ARMs, HELOCs, etc.), should be watched and understood. Your Personal Mortgage Advisor can help you in keeping up to date with market conditions and products, which can lead to advantageous financial decisions.
For example, when looking to refinance, our Nations Lending Personal Mortgage Advisors make sure you compare the potential benefits with the costs associated to refinancing. A good way to determine if you should consider a refinance is if current interest rates are lower than the interest rate on your mortgage. Your Personal Mortgage Advisor can help you calculate the savings from refinancing.
Another advantage of being a homeowner is the ability to pull cash out of your home if you have equity in the house. This can be done by obtaining a new mortgage higher than your current balance and then being able to receive the difference as cash at closing. For those looking to pay off their mortgage debt more quickly, there is also the possibly of refinancing your home by reducing the term of the mortgage, which could also result in a lower interest rate. It’s important to stay abreast of mortgage rates in case the option of a refinance proves to be fruitful and can potentially help reduce a monthly payment or re-allocate expenses for a home improvement project.