Refinancing Has Its Benefits
Some of the main benefits of refinancing include the following:
- A lower interest rate typically means a lower monthly payment. By freeing up dollars in your monthly budget, you will be in a better position to meet some of your other financial goals such as paying off other high-interest debt, putting more dollars towards your savings or retirement, or simply having more disposable income each month to make other purchases or do things you enjoy.
- Pay off your home loan early. Many borrowers find that they can reduce the term of their loan by refinancing. For example, a reduction in your interest rate might put you in a position to move from a 30-year home loan to a 20-year home loan without a significant change in your monthly payment. By doing so, you could benefit greatly from the reduced interest expense.
- Option to get cash out when you refinance. While your lender is processing your transaction of refinancing, you may also be able to access the equity you have built up in your home and withdraw funds to take care of things like home improvements or repairs, pay off high-interest debt, or get cash for other purposes like paying for medical bills or even taking a vacation.
Be sure and check out the Mortgage Calculator on our website, which is entitled “Should I refinance?” which allows you to input numbers specific to your current mortgage. As always, however, our Mortgage Originators will be happy to share their expertise and review your current mortgage. That way you can determine how much you can benefit personally by refinancing your home loan.
Here at CNB, we love helping our customers to achieve their dreams and to be as financially successful as possible.