DISMISSING REFINANCING FEARS

“Refinancing” can sound like a scary word for many, but that shouldn’t be the case ever. For many homeowners, refinancing can lower your monthly payments and help with your monthly budget, saving you thousands of dollars in the long term.

YOU’RE NEVER TOO LATE.

For years now, we hear that interest rates will be on the rise, and although there have been some small increases, you’re still in a great position to drastically lower your interest rate. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.

IT’S NOT TOO TIME-CONSUMING.

Don’t brush off refinancing just because it seems like a long and daunting process. An informational call with a lender to see how rates compare will only take a few minutes. And, there are programs for streamlining the application process. The amount of money you could save is worth the time and effort.

ARMS CAN BE REFINANCED, TOO.

Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter-term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.