Is refinancing your 30-year mortgage a good idea?
That's the question we've been getting lately. It's no wonder! Current mortgage rates are excellent, making homeowners take a second look at their existing home loans.
If refinancing your 30-year mortgage to lower your monthly payment or to have possibly some extra funds for saving or investing sounds like you, you'll want to read this article.
Have you already decided that you need to refinance into a lower-rate mortgage? Get started immediately by clicking on the "apply now" or "contact us now" on our homepage.
The advantage to refinancing a 30-year loan is the possibility of lowering your monthly payments. Each existing loan is unique, so the best way to know if your payments will be reduced is to contact us. However, your mortgage payment will likely be lower because the new loan will be spread over a greater number of years.
There is one caveat: while the monthly payment will likely be reduced, you may end up paying more over the life of the loan. The reason for this is because you would be "starting fresh" with a new interest rate and essentially restarting the clock.
When you reduce your monthly mortgage payment, you free up money that you could put to use in other areas. You could invest it, use it to pay off debts, make upgrades to your home, offer more to your charities, or lock it away in a savings account.
The choice is yours!
Refinancing now also ensures that you are locking in an excellent rate, protecting you against inflation. And just like your current 30-year mortgage, you'll have that peace of mind knowing that your mortgage payment will be stable over the next 30 years.
Like mentioned above, when you refinance into a new 30-year loan, you'll pay more interest over time. But this may not be something to worry about in your situation, especially if you plan on investing that freed-up cash. When considering your gains from your investment and compare it to the interest you pay on your new loan, you may still save! Refinancing and You
With 30-year mortgage rates such as these now is a great time to lower your payments with refinancing. It can reduce your mortgage payment and free up some cash for investing or saving.
Still confused or need more information? We can help!
We pride ourselves on fast, honest, and personalized mortgage services. We will take a careful look at your financial goals and help you make the best decision for your money.
Find out if refinancing makes sense for your particular situation by contacting us today!
Use the contact form on our homepage or call us directly. We look forward to hearing from you!