Low mortgage rates make now a great time to think about refinancing your home. By taking advantage of the equity in your home, You can refinance, pay down a portion of your high interest rate consumer debt, combine any remaining balance into your refinancing and end up with lower overall monthly payments. You may also want to consider refinancing if you currently have a second mortgage and would like to roll the two together at a favorably low interest rate.
One of the most common reasons to refinance your existing mortgage is to take advantage of the lowest available interest rates and thereby save on monthly mortgage costs.
Interest rates are now at a 30 year low, if interest rates have dropped since you secured your mortgage, you may be able to get a new loan (known as refinancing) with the current lower interest rate. Refinancing would then likely reduce your interest costs and possibly your monthly payment costs.
Find out more about our services and the different refinancing options available. Fill out our Questionnaire and we will contact you to help you make the best use of your resources.
You can use the equity borrowed to pay of credit card debt knowing that the interest rate on a home loan is usually lower than the interest rates charged by credit card companies. As another plus, the interest on your mortgage is usually tax deductible, while the interest on your credit card is not.
There are two ways to use your home equity to borrow money. You can either refinance your existing mortgage for a larger amount than your remaining balance (a cash-out refinance) or take out a home equity loan.
Cash-out refinances are generally less expensive, but a home equity loan will usually let you borrow more.
By moving into a new mortgage with a shorter term, you can sometimes reduce interest costs (even if interest rates haven't declined). By simply reducing the term of the loan, you would typically save thousands in interest costs.
By extending the term of your existing mortgage, you can reduce your monthly payments.
As an example, if you have 23 years remaining on your current mortgage, you may be able to reduce your monthly loan payments - even if interest rates have not gone down since you got your loan - by replacing your existing loan with a 30-year mortgage. However, increasing the term of your loan will usually result in a higher total of payments over the life of the loan, but you will pay less each month.
The question is whether the lower monthly payments are worth delaying the benefit of completely paying off your mortgage.
To find out more about your refinancing options and how you can take advantage of the current low mortgage rates, fill out our Questionnaire and we will contact you. Together we'll figure out what the best course of action is for your individual circumstances.
Bayside Mortgage Services, Inc
3901 Main Street
Grasonville, MD 21638