HomeNewsThree Good Reasons...

Three Good Reasons to Refinance Your Mortgage Now

With the level of turmoil in the financial markets the past few years, one thing that we have all recognized the need for is a good, solid financial base. Entire countries are going broke and needing to be bailed out, so individuals need to take advantage of every opportunity that comes their way. Right now, one of those opportunities could be the refinancing of your mortgage.

At the moment, mortgage rates are at or near an all-time low. To be frank, I never imagined a day when you could finance a home for less that 4%; it still seems unreal. And yet, these are the times we live in. But not only is it a great time to buy a home, it’s also a fantastic time to refinance if you’re already a homeowner (and haven’t refinanced in the past few years), and here’s why:

1) Great Rates – Just doing some window-shopping will reveal that refinance rates are around the 4% mark. That’s quite a bonanza compared to just a few years ago, and refinancing would save most of us a pretty penny in terms of lower payments.

2) Extra Cash – As already mentioned, refinancing would lower your monthly mortgage. The flip side, of course, is that you now have more spending cash at your disposal. It’s as if you’ve been given a raise! Of course, the smart thing to do – assuming you don’t have a pressing need for the money (e.g., college tuition, kids’ braces, etc.) – is to max out your retirement plans. I know, I know: I just talked about how volatile the markets are, and now I want you to put this newfound cash immediately at risk. The truth of the matter, however, is that the value of any cash you receive will diminish over time unless you can invest it such that the returns outpace inflation. Thus, we come back to the stock market. However, I like to think that most of us have time to ride out any short-term market fluctuations, such that by the time we’re ready to withdraw cash from our retirement accounts the world will be much more stable, at least financially.

3) Cash Out – If you are having financial difficulties, refinancing can let you take some of the cash out of your home and apply it as you see fit. Just be aware that you may not get the best available rate if you take cash out, and you will decrease the amount of equity you have in your home. (Other options to refinancing solely for this purpose include a home equity loan or home equity line of credit, but those are discussions for another day.)

In short, there can be some nice benefits to refinancing at current rates, but it’s not all sunshine and roses. Depending on the terms of the loan, you may find yourself back with a 30-year mortgage after several years of payments under your prior loan. Also, don’t forget that loans aren’t free, and there are likely to be several thousand dollars in closing costs. Still, I think after putting all the pros and cons on the scales, you’ll come out ahead refinancing at today’s rates.

Get notified whenever we post something new!


Create a website from scratch

Just drag and drop elements in a page to get started with Newspaper Theme.

Continue reading

Kidney Failure in Dogs, What you Need to Know

Kidney failure is a common problem in both cats and dogs usually associated with old age. It is a progressive and degenerative disease normally although there is an acute form. It is not common to catch the disease in...

How to Listen to Police Scanner Online

Interested in learning how to listen to police scanner online? Millions of people listen to police scanners online and on their mobile phones every day. What you’ll hear is real-time, live dialogue between various first responders and dispatchers. You’ll...

Sample Letter of Intent to Occupy

A sample letter of intent to occupy can be a very important document. There are times you are looking for a location to establish your business and you’ve just discovered the perfect one. However, there are a...

Enjoy exclusive access to all of our content

Get an online subscription and you can unlock any article you come across.