Here are 3 reasons to refinance:
1) Low Interest Rates
While there will be a penalty to break your Mortgage, you will have to figure out how much the interest will cost you to stay with your interest rate now compared to the new interest rate. If the new rate saves you more money, it might be a good idea to refinance your mortgage.
2) Equity in Home
There may come a time, when you need some extra cash to complete a project or maybe invest in stocks or education. Whatever it may be, you can take out 80% of your home’s value minus any mortgage left.
Debt can happen and depending on how much of your mortgage has been paid off, you may be able to consolidate your debt into your mortgage.
Here are some of the ways to refinance:
1) Break your Mortgage
2) Get a Home Equity Line of Credit
3) Blend your Mortgage
This means keeping your mortgage rate with what your borrowed up to now but anything you borrow after today will have the new interest rate.
At the end of this article, there’s a great tool to figure out how much the penalty will be to break your mortgage.
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