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Are you considering refinancing your mortgage, but aren't quite sure if it is the best option for you? People normally refinance to save money, and there are many different ways to save money by refinancing. When you refinance, the process is similar to when you closed on your first mortgage, only this time around you are loaning money to pay off your first mortgage, and can end up with lower interest rates or a different mortgage term. Here are some different reasons people choose to refinance their home:

Get a Lower Interest Rate

The top reason for refinancing your mortgage is to get a lower interest rate. Lowering your interest rate by even just 1% can save you a considerable amount of money. Interest rates are still at all time lows which means you may have the opportunity to lower your interest rate by over 1%. The drop in the interest rate will mean that more money will go toward your principal balance rather than interest payments. This will help out your finances substantially in the long run.

Get a Fixed Mortgage Rate

Switching to a fixed rate mortgage from an ARM could be a great financial choice. If interest rates have risen since you first got your mortgage, so have your monthly payments. Many people choose to refinance to receive a fixed rate at today's low rates, which can save you money in the long run. This is an especially beneficial option if you are planning on keeping your mortgage much longer. 

Shorten Your Mortgage Term

Do you currently have a 30-year mortgage? It could be worthwhile to refinance to a shorter mortgage term. Although this option will increase your monthly payments, it will save you the most money long-term. 

Lower Your Monthly Payments

If you are looking for more of a short-term option, refinancing can be a great way to lower your monthly payments. Although shortening your mortgage term would save you more money in the long run, refinancing to lower your monthly payments will still save you a great deal!

Clear Your Credit Card Debts

Did you know that home equity can be used to pay everything off of your credit card? Refinancing your mortgage in order to clear credit card debt has been a growing trend due to the fact that mortgage interest rates are tax deductable, unlike your credit card debt. Refinancing to pay off your credit card can save you money and can rid you of high interest rate credit card debt.

Get Extra Funds

Refinancing now can help save you money, no matter what way you choose to look at it. Use these savings to help fund one of your own personal endeavors like fixing up your house or start saving for your child's college tuition. 

If you are looking to refinance your home with today's low interest rates you can apply online or reach out to one of our trusted mortgage professionals by calling (855) NORCOM1!