Historically Low Rates Make It The Perfect Time to Refinance Your Home
With mortgage rates at an all time low, it may be the perfect time to refinance. Refinancing can make a huge difference in your monthly budget and ability to pay off your mortgage faster. Not sure if it is the right option for you? There are a variety of reasons to consider a mortgage refinance.
- You have an adjustable rate mortgage (ARM)
If you have an ARM, you should consider switching to a fixed-rate mortgage. With a fixed-rate, you can avoid the risk of your loan rate increasing and ensure predictable monthly payments.
- You want a shorter loan term
A shorter loan term means you’ll pay less in total interest. If your mortgage is a 30-year term, then refinancing can get you down to a 15-year fixed-rate mortgage. Keep in mind, if you already have a low rate on your 30-year term, you may not want to refinance. It could end up costing you more, so make sure to run your numbers and calculate what your monthly payment would be on a 15-year term.
- You want to lower your interest rate
If your current mortgage has a high interest rate, refinancing to a lower rate is a smart move, even if you keep the loan terms the same. This can significantly drop your monthly payments.
- To get cash from your home
If you need funds to pay for major expenses or to help pay off debt, refinancing allows you to tap into your home’s equity to get cash for these expenses.
Should You Refinance Your Mortgage?
If you’re planning to stay in your home for a while, then refinancing could be a great option for you. It’ll help you stay in control of your monthly bills and you’ll have more money to put toward becoming debt-free. Take advantage of these historically low rates by refinancing through Lowland CU. Whether it involves lowering your monthly payment or changing your loan term, we’ll help you achieve your financial goals. We have mortgage specialists ready to help answer any questions, and help you through the entire mortgage process.
Contact us to get started!