Have you considered refinancing your home lately? With such low-interest rates, we have a number of clients asking us about refinancing their homes. Here are a few reasons why now may be a good time to do so.
Refinance Your Home to Lower Monthly Expenses
During these turbulent times, anything you can do to lower monthly expenses is generally a good thing. Job security feels non-existent for many people, so anything they can do to lower monthly expenditures and add money to the piggy bank is a good thing.
Refinancing your home right now is a good opportunity to potentially save a lot of money on your monthly mortgage payment. Some of our clients are saving hundreds of dollars a month by taking advantage of these very low-interest rates. What can you do with a few hundred dollars a month? It would certainly make your savings account grow a bit faster, right?
And if you do end up in the unfortunate position of losing your job, at least your monthly bills are lower. It will be easier to stay on your feet than with your current mortgage payment that’s a bit higher than what’s possible.
If you’re able to get out of Private Mortgage Insurance (PMI) by refinancing your home, even better! That kills two birds with one stone, and you’ll see a huge drop in monthly payments.
Refinance Your Mortgage to Consolidate Debt
One of the main reasons why people refinance is to consolidate debt. When you have credit cards with tens of thousands of dollars on them, it can feel overwhelming to see that monthly bill. The interest charges alone may be hundreds of dollars, which is discouraging.
It doesn’t have to just be credit cards though. Interest rates on student loan debt is in the 6-10% range for many people. When you have tens of thousands of dollars of student loan debt, those monthly payments add up too. In fact, some financial experts see this as a much bigger problem than credit card debt in the United States.
Meanwhile, current interest rates for mortgages are less than 4% for a lot of people. By consolidating that high-interest debt into a very low-interest rate, it gives you room to breathe. You’re able to put much more money towards the principal every month instead of just paying off the interest.
And because your monthly bill is lower, you’ll be in a better position in case the job market goes south and you aren’t able to work for a few months.
Refinance Your Home to Free Up Cash for a Side Business
Do you have a side hustle you’re trying to grow? Or maybe you have an idea for a business like selling great-looking face masks?
These days, it’s common for people to be moonlighting and have a side hustle to make extra cash. Refinancing your home can both lower your monthly expenses and put extra cash in your pocket, giving you the capital you need to grow your business. That’s a win-win. Who doesn’t want lower monthly bills and a growing money tree?
Right now is one of the best times to refinance we’ve ever seen. Give us a call at 1-877-556-2655, we’d love to help you get a better rate on your mortgage.