5 Reasons You Might Want to Refinance?
About a month ago I decided to refinance my home in Fort Walton Beach. Why? Well, mainly because my insurance was ridiculously high and I figured, if I am going to lower my monthly payment, I might as well Refi along with it and get my interest rate lowered a bit.
Hmm, so perhaps you have been considering refinancing your home. Here are 5 reasons why you might want to:
1. Lower your interest rate - well this is a great reason right now with interest rates at an all time low.
2. Reduce the length of your mortgage - I have mixed feelings on this, I would suggest refinancing for the same amount and increasing your payment if you'd like to shorten the time. Reason being, life happens, you never know when life will decide to put you through a rough patch and you don't want to be forced to make a high payment if it comes down to it.
3. To make home improvements or to replace a large ticket item - maybe you need to replace the roof but don't have the cash but you have equity. You can pull money out and in turn, increase your loan essentially borrowing off of your equity. This can be a good option especially if it is something that needs to be done to the home.
4. To attain a fixed interest rate if you are on an ARM - with rates as low as they are at the time this blog is written I believe getting out of an ARM is a good idea.
5. To escape a balloon provision - this is a little more rare, but some loans have a balloon payment which is surprisingly close to what it sounds like. Nearing the end of the cycle, the remainder of the loan or a large sum is needed which was agree'd upon previously when you purchased the property. A refi can help you get out of that in case you wanted to keep your money in your pocket.
Now all of these are great reasons to refinance but the process can be expensive and take quite a bit of time.
Luckily, for me, it was neither. I teamed up with a great lender who was very quick and easy to get information to and ultimately walked away with money (and I wasn't even doing a cash-out refinance!).
No matter what your reasoning is for refinancing your home, be sure that you have a great lender and team to help you out. For a list of great lenders from Pensacola to Panama City, visit our Partners page or click http://www.homesinemeraldcoast.com/featuredpartners/