A lot has been made in the past year or so about refinancing your home while rates are low. Well, those rates appear to be heading back up according to trends from the last few months, so if you’ve been wanting to refinance your home, Security State Bankencourages you to visit us sooner rather than later.
Now, you may be asking, “Why would I want to refinance my home?” You may remember getting the original mortgage for you home and all the numbers, terms and paperwork that took. But there are a number of great advantages to refinancing your home while interest rates are still low.
- Lower monthly mortgage payments- by extending a 15-year loan to a 30-year loan, you can actually lower your payments. For example, your monthly payment on a $200,000 mortgage interest rate with a 7 percent interest rate would drop from $1,792 to $1,329.
- Lower interest payments- if interest rates are lower than when you first got your mortgage, you can save a lot of money over the life of the loan. A $200,000 mortgage reduced from 6 to 5 percent will save you over $45,000 in interest payments. That’s a good chunk of change!
- Build equity faster- if your income has increased, you may want to consider making a higher payment or switching to a 15- or 20-year mortgage from a 30-year. This allows you to build equity faster without paying out large amounts of money every month.
- Change loan type- if you started out with an adjustable-rate mortgage, you may want to switch to a fixed-rate mortgage because of the additional security from fluctuating rates.
These are just a few reasons to refinance your home now before mortgage rates continue increasing. The mortgage experts at Security State Bank understand that your situation is unique, so they’ll take the time to understand your situation and your goals.
Get in touch with us at any of our locations to learn how refinancing your home could benefit you!