Here are 6 reasons why refinancing your home might be right for you:
- To reduce your interest rate: One of the best reasons to refinance is to lower your interest rate. This can save you money in total interest paid over the life of the loan.
- To reduce your term (payoff time): Lowering the term of the loan can help you build equity faster and save you money in total interest paid on the loan. If your mortgage has 18 years left, a 15-year mortgage is worth considering.
- To fix your interest rate: Homeowners with an adjustable rate mortgage (ARM) may want to switch to a fixed rate mortgage to lock in a lower rate and avoid rate fluctuations on their loan.
- To drop the PMI: If your house has more than 20% equity, you may no longer need to pay Private Mortgage Insurance, which can be around $200 a month. Some people refinance for this reason alone.
- To lower your monthly payment: Others refinance to lower their monthly payment to improve monthly cash flow for other needs.
- To take cash out of the equity in your home: Cash-out refinances are often used to remodel your home, pay for other major life expenses, or pay off debt.
Deseret First Credit Union has a knowledgeable and friendly Mortgage Team. If you’re thinking of refinancing, we would love to work with you to find out your needs and explain the options.
At Deseret First Credit Union: "We teach, we don't sell." That is why over 90% of our members surveyed are "Extremely Satisfied" with our mortgage services.
Call us today at 801-456-7095 or visit us online.