04 Nov Celebrate the Holidays with Refinancing
If you’re looking for a way to keep a little more money in your pocket during the holidays, consider refinancing. When you refinance your home, you gain a payment-free period of time normally 30 days, leaving you with more money for this season’s celebrations.
Refinancing can also put you in a better long-term financial situation. There are many reasons people choose to refinance their homes. If you have equity in your current home, refinancing may be an option. If you’re interested in refinancing, we’re here to walk you through your options and their benefits:
- Shorten the term of your loan. If you have a 30-year mortgage, you may find that due to lower interest rates, refinancing to a 15-year mortgage may not increase your current mortgage payment.
- Lower your interest rate. If your home is currently financed at a higher interest rate, it might be a good time to consider refinancing. By taking the time to fill out necessary paperwork and gather the needed documents, you could save thousands of dollars.
- Lower your payment. Although refinancing to lower your payment could increase the term of your loan, it also could be a better fit for your financial situation. Refinancing your mortgage could mean drastically reducing your payment.
- Move from an adjustable rate mortgage to a fixed rate loan. With an adjustable rate mortgage, your interest rates can vary. Locking into a low fixed rate can protect you from rising interest rates in the future. Additionally, a fixed payment is easier to budget for.
- Cash out home equity. With cash-out refinancing, you refinance your mortgage for more than you currently owe and then pocket the difference. The interest rate on a cash-out refinancing is usually lower than the interest rate on a home equity loan. It could make sense to cash out on some of your home equity in order to start a business, buy an investment property or finance your child’s education. If you can manage your debts responsibly, consider cashing out.
Contact an American Lending Solution’s professional today. We’re happy to discuss all your refinancing options and help you decide if refinancing is the right move for you.