Everyone’s mortgage situation is different, but refinancing is a great option for a lot of people right now. There are a variety of situations that it would make sense to refinance, even if you’ve got a lower rate than is available right now. You can get creative with your mortgage to save big.
The most direct way to save is by refinancing your loan for a lower rate. Rates are historically low right now, so if you haven’t had a mortgage review in a while, now is the time. We’re more than happy to take a look at situation and find some great programs for you. A lot of factors impact your loan so if your situation has changed, let’s talk about it!
Adjustable Rate Mortgages
For instance, if you’ve got an Adjustable Rate Mortgage, you could move to a Fixed Rate Mortgage. Rates have been dropping the past few years and are historically low right now, but experts predict they will be rising soon. Therefore, if you’re worried about rates increasing, this may be a good idea for you.
Or you could even move to a different ARM. If you are getting close to the adjustment period on your Adjustable Rate Mortgage, you could move to another ARM and potentially save on interest. If you aren’t planning on keeping the loan for an extended period of time, there are 5-year and 7-year options that may be a great way to end up with a lower monthly payment.
Short Loans vs Long Loans
Along that same train of thought, perhaps you have a long loan life, and you’d like to move to a shorter term. If you’ve got a 30-year term and move to a 15-year term, you’ll most likely have higher monthly payments, but be able to pay off your loan much faster with lower interest overall. We also offer flexible term limits, meaning that we can get extremely precise with how we structure your mortgage. So if you’re planning on retiring in 22 years, we can get you a 22-year mortgage.
On the flip side, if you got a 15-year loan and the payments are hard to meet, you can move to a longer term and alleviate some of that pressure. Homeowners and renters alike are struggling due to the ongoing pandemic, so this may be a great option for a lot of borrowers.
Cash Out Your Mortgage
There are even situations where you can get a cash-out refinance if you need the money right now. This option is conditional on a few things and isn’t available to all borrowers. You’ll need a fair bit of equity, and will probably end up with a higher rate, but depending on your situation, it may be your most cost-effective method of getting cash-in-hand.
Depending on how long you’ve had your loan and how much equity you have, you may be able to reduce or even eliminate your monthly mortgage insurance costs.
Mortgages go far beyond your house — it impacts your entire life. We’re here to help analyze all your options and leverage your assets to meet your goals. Whether that’s aggressively trying to pay off your loan or simply just trying to find the lowest rate, we’ve got you covered.