With interest rates being near record lows, the refinance boom is still in full effect and there is a lot of money to be saved.
It’s never been a better time to refinance your mortgage!
Low Interest Rates
You have probably seen it everywhere by now that mortgage rates are near historic lows and have not shot up in any major way. A mortgage refinance certainly won’t save money for everybody, but if you fit the criteria, it could drastically improve your financial situation.
Just like any financial transaction, there are a lot of factors that need to be evaluated to ensure that you come out on top.
While the benefit of refinancing your mortgage is based on specific criteria, there are a few generalities that will let you know you’re on the right track to improve your financial future. As a general rule of thumb, if you are offered a lower interest rate than you currently have and are likely to stay in that home for some time, a mortgage refinance can definitely save you money and put you in a better financial situation.
The length of your current loan is not a factor you need to consider unless you are looking into a cash-out refinance. The ability to lower your interest rate even in a newer mortgage allows you to save money over the life of your loan.
With home prices on the rise and more people having equity in their homes than ever, cash-out refinancing has been a popular loan program for saving money and accessing the value of your home. When you execute a cash-out refinance with AdvantageFirst Lending, you can pull cash out of your home and replace your existing mortgage with a brand new one. That cash can be used to make home improvements, pay off higher-interest debts, or anything else you want to use it for.
When Is It A Bad Idea To Refinance?
While refinancing your mortgage is generally a major win for homeowners looking to save money on their monthly mortgage payments, some borrowers are not in a situation where it makes sense. The simplest way to tell if a refinance isn’t right for you is if the rate offered is higher than your current interest rate. That loan will likely have no benefit for you. Another thing to consider when looking at a refinance is how long you plan to stay in that home. It may not make sense to refinance the mortgage if you are looking to move into a new residence soon.
About AdvantageFirst Lending
AdvantageFirst Lending is a mortgage lender located in Southern California that specializes in all home financing programs. With customer service being at the forefront of every transaction, every borrower is treated like an individual rather than just a number. For more information, visit our website and follow us on Facebook and Instagram. Also, be sure to check out our reviews on Zillow.