Borrowers are loving the current record low interest rates, and homeowners stand to benefit even more.
If you bought your home more than a few years ago, you could probably benefit from a refinance at today's interest rates. With interest rates like this, you owe it to yourself to at least give refinancing a look. If you can refinance your mortgage and get a rate at least half a percent lower than what you are paying, chances are refinancing makes sense. You could save thousands of dollars!
Refinancing your mortgage to get a lower rate is one of the smartest things you can do. When you refinance your mortgage to a lower interest rate, you gain the instant benefit of a lower monthly payment, and those savings can really add up. Depending on the amount of your mortgage, even a small drop in interest rates could mean hundreds of extra dollars in your pocket every month.
While those instant savings are certainly compelling, a lower mortgage payment is not the only advantage of refinancing your mortgage. When you take the long view, the value of a mortgage refinance becomes even more apparent. Every dollar you save now is one less dollar you have to pay the bank - and one more dollar you have to invest. Over the life of the mortgage loan, the combined interest savings and extra investment income could mean tens of thousands of dollars in your portfolio.
Refinancing your mortgage is also a great way to pay for needed home repairs or renovations. If your home needs work but you lack the funds to pay for it, refinancing your mortgage could allow you to take money out and tap the equity you have built up through the years. It adds value to your home over the long run so why not invest early. And since interest rates on home equity loans are generally lower than other types of loans, you will pay less interest as you get your home back in shape.
There are many compelling reasons to take advantage of refinancing your mortgage. Everything from home repairs to monthly mortgage payments could be costing you more the longer you wait getting them done. There is no time like the present to start doing today, what will benefit you tomorrow.