A home refinance can be a big financial transaction, although well worth doing as it can potentially save you thousands of dollars over the term of your mortgage.
Most people refinance their mortgage to save money, and even a small drop in the interest rates can mean substantial savings on the amount of your monthly payment. The higher the amount of your mortgage, the more money you can potentially save.
Refinancing also allows you to extend or reduce the term, or length of your mortgage, and if the interest rate drops significantly, you can pay the same monthly amount but pay off your mortgage faster.
If you have an adjustable rate mortgage, your monthly payment amount is subject to increase or decrease, depending on the current interest rate. With a loan refinance, you can lock in a lower interest rate and enjoy peace of mind and the reassurance that any rise in interest rates won’t affect you.
You will need to be current on your payments and have good credit to be eligible for refinancing, but it an be a smart financial move.