Lower the interest rate. You deserve to be number one, because it is the best reason of all. If you can lower your mortgage rate meaningfully, then you can save money month-to-month and over the full term of the loan. Even if rates have not dropped, you might get a better deal of your credit has improved or you have built up some equity in the property.
Lock in the interest rate. You may have started with an adjustable rate mortgage, but when interest rates are near historical lows, it generally makes sense to refinance to a fixed rate mortgage and lock in an attractive rate.
Upgrade the home’s value. Refinancing a mortgage and taking out a little extra principal can be smarter than a home equity loan–if you can improve on the terms of your existing mortgage, and if you put it into home improvements you will be reinvesting that money in your home’s value.
Make the home more energy efficient. Similarly, putting money into making the home more energy efficient can pay off over time in the form of lower utility bills. There may also be tax incentives or rebates from your local or federal government.
It may allow you to access money for education. Be wary of borrowing long-term to finance short-term expenses, but for a lifetime investment like education, it can be a smart move.
To consolidate more expensive debt. If you access equity by refinancing so you can pay off other debts, you can reduce your interest rates and improve your cash flow. Take this opportunity to reform some bad habits and resist the temptation to run your cards up again.
To find out more info on programs available, please call 888-713-2929 to speak to one of our Loan officers standing by.