The benefits of refinancing are numerous, and can have a positive impact on your financial life. If you’re considering refinancing your mortgage in McAllen, TX, then be sure to consider these three important reasons to refinance your mortgage refinancing McAllen TX, before you commit to it. Doing so will help you discover whether or not refinancing is right for you in the long run. After all, there are plenty of downsides to refinancing that many don’t realize until they’re actually ready to sign on the dotted line.
To get a lower interest rate
If you have a mortgage with a high interest rate, refinancing may be the best option for you. With this process you can lower your interest rates and can also shorten the term of your loan. Plus, there are typically no fees associated with refinancing. To determine if this is a good idea for you ask yourself these questions: Do I want to buy or sell my home? Am I considering moving out of state or do I plan on staying put? Is my current monthly payment over $1,000? If you answered yes to these questions then refinancing may be right for you.
To change the term of your loan
Refinancing your mortgage can be a great way to change the term of your loan and save money on interest. Here are three reasons you might want to consider refinancing: 1. You’re looking for a lower interest rate. 2. You’re looking for a shorter loan term. 3. You want cash out from equity you’ve built up over time in the home. 2. If you have a 30 year mortgage, but want to shorten it to 15 years or less so that you can get into the market sooner while rates are low, this is one option that may work well for you!
- Borrowers may also be able to refinance when they have equity in their home. With many mortgages today coming with no down payment requirements, most people who have owned their homes for five years or more will likely have some equity build up
To convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
If you’re considering refinancing your mortgage, there are a lot of things to consider. The first thing is the difference between an ARM and a fixed-rate mortgage. An ARM is an adjustable-rate mortgage with fluctuating interest rates that can change every year or two. best mortgage company McAllen TX have interest rates that don’t change over the life of the loan. If you have an ARM and your interest rate jumps from 3% to 5%, for example, your monthly payment will increase by 33%. That’s not usually going to work if you’re on a tight budget. There are also other advantages when it comes to fixed-rates like they’re easier to qualify for and they offer more options for different types of loans like 15 year vs 30 year loans.