The most common reason borrowers refinance their mortgages is to take advantage of low mortgage rates. If a homeowner is paying higher interest rates on a loan, refinancing when mortgage rates decrease will allow them to both lower their monthly payments and save on the amount of money required throughout the lifespan of the loan.
Another advantage to refinancing is accessing a property’s equity. Borrowers can access up to 80 percent of their home’s value, using the money for everything from home improvement to education costs. This can come in the form of either a home equity loan or home equity line of credit, also known as a HELOC. These types of loans often feature lower rates than traditional loans, resulting in further savings for homeowners.
If your considering refinancing contact me today and find out your options.