Loans: Refinance Now to Avoid your ARM rate Increase... ARA Content
(ARA)- The effects of refinancing your mortgage can be dramatic, since it's a tool you can use to improve your financial situation. To take best advantage of it, look at where you are and assess your needs. Then explore the market.
Here are four great things a mortgage refinance can do for you:
* Lower your monthly payment
Simply exchanging a higher interest rate for a lower one will reduce your monthly mortgage payment. But you may also be able to lower your payment by changing from one type of loan to another.
Moving from a fixed rate to an adjustable rate may put more cash in your pocket each month, but it works best if you know you'll move before the initial rate ends.
* Stabilize your mortgage rate
If you already have an adjustable rate mortgage and your initial interest rate period is about to end, you can refinance to a fixed-rate that may save you money over time. The interest rate on an adjustable-rate mortgage can keep climbing. A fixed-rate loan takes the guesswork out of budgeting.
* Put cash in your pocket
You can get funds by doing a cash-out refinancing, where you can draw on your home's equity by borrowing more than you currently owe. It can be cheaper than taking a home equity loan or second mortgage, which generally carry higher interest rates.
* Make your debt more manageable
If you have enough equity in your home to cover your other debts, refinancing to get the cash may work to your advantage. It may reduce your total monthly payments and the larger mortgage may be tax deductible, an advantage not available with credit cards. To make this plan work, you'll naturally need to refrain from running up credit card debt again.
It's important to define your needs and your abilities before refinancing. Once you know what they are, it will be easy to find the Best refinance mortgage deal for you.
Begin by getting matched with the best lenders at NationalHomeSavings.com. Ask each lender about a mortgage refinancing and what they can do to meet your needs.
NationalHomeSavings.com has been helping people across the country find the best mortgage loans, refinancing rates, and home equity loans across the nation since 2003. Click here to learn how the service can work for you.