It is always important to consider ways you can save money. It is admittedly difficult to stay on top of all of your finances and bills, especially now that so many things are automated. Even keeping track of all of your streaming services — we’ve all forgotten to cancel what was supposed to be a free, month-long trial — can be arduous. Similarly, it is easy to fall into a cycle in which you simply make your monthly mortgage payments and go on with your life. While having this security and peace of mind is alluring, it could cause you to spend more money than you need. In today’s blog, Family Home Loan Texas discusses refinancing and the ways it can save you significant amounts of money throughout the life of your mortgage.
What Is Refinancing?
When you refinance your mortgage, you are getting a new loan on your house with updated terms. The main outcomes of doing this are changing the length of the mortgage, taking advantage of lower interest rates, or switching from a fixed-rate loan to an adjustable-rate loan (or vice versa). Lately, interest rates are historically low, so those who have fixed-rate loans originating many years ago could see serious savings by refinancing and securing a lower rate. Typically, adjustable-rate mortgages can allow you to save money in the present and near future, but they often end up over-taking fixed-rate ones if you have them for long enough.
If you are in a financial position where shortening the length of your mortgage is feasible, refinancing can also allow you to pay it all off earlier without taking any penalties. You will have to pay closing costs again, but it could very well be worth it when you calculate how much you will save in the long run.
A Cash-Out Refinance Is Another Option
Cash-out refinancing is a way to not only get more favorable terms but can also allow you to pocket money at the same time. When you receive this type of loan, your new mortgage amount will be higher than the one you got when first purchasing your home, and you will receive the difference in cash. This is particularly advantageous if you need to make home repairs and need a large sum of money at once. Not only can you make your home nicer, but it will also add value to your home, allowing you to probably sell for a higher amount down the road if you decide you want to move.
Contact Us To Learn More About Refinancing
Family Home Loan Texas was founded by loan originator and long-time mortgage professional Rob Bramer. Rob has helped clients secure the loans they need both locally and nationally and can help you get the loan you need to live life on your terms. Call 1-800-990-LEND (5363) to speak with Rob about how he and his team can help you refinance your mortgage loan and save money.