When it comes to refinancing your mortgage, Neighborhood Loans wants you to know that you have options available. Refinancing has the potential to make your mortgage much more manageable when handled by our team of experienced mortgage professionals. If you’re still unsure about the potential benefits of refinancing, here are a few to help make things clear.
Lower Mortgage Payment
Lowering your monthly mortgage payments is the obvious benefit of refinancing. For example, should the market rise while you’re in an Adjustable Rate Mortgage, you’ll suddenly find yourself paying much more on your monthly payments than you’d planned. You can refinance into a Fixed Rate Mortgage and be able to plan your monthly budget around the locked in rate.
Lower Interest Rates
Along with lower mortgage payments, refinancing can also lower your interest rates. While it is likely that you won’t see your interest rates drop more than 1-2%, you will still save more money than you would have before you refinanced.
Extending the Term
Extending the term of your mortgage is another benefit you have through Neighborhood Loans. Granted, refinancing from a 15 year mortgage into a 30 year mortgage may sound like you’ll have the mortgage that much longer, remember that a longer term means that payments are lower because the term is longer.