Mortgage refinancing has recently become more and more popular among homeowners since interest rates are relatively low. Depending on your circumstances, refinancing your mortgage may be one of the best financial decisions you'll ever make. To find out if mortgage refinancing is right for you, get in touch with Downs Financial. We offer a whole range of refinancing options; depending on what your financial goals are, one is certain to be right for you.
The Benefits of Mortgage Refinancing
As you probably know, when you buy a house you end up paying more for it than it is actually worth. This is because your lender charges you interest on the amount of money that you borrow, so each mortgage payment you make goes partly toward the principal and partly toward interest. It's hard to believe that a single percentage point in interest can make much of a difference, but over 15 or 30 years it can mean a difference of thousands of dollars. Take, for example, a 30 year loan of $100,000. Someone paying eight percent interest on that loan will end up paying $25,000 more than someone with a seven percent interest rate!
When you refinance in order to lock in a lower interest rate, it's called a rate-term refinance. As the name would suggest, you can also refinance in order to improve the terms of your mortgage so that they better fit your lifestyle. If you've had an increase in income, you can convert to a mortgage with a shorter term that will help you build equity faster. If you currently have an adjustable rate mortgage (ARM) and you're worried that interest rates are going to rise, you can refinance for a new ARM loan with protective features such as rate caps.
At Downs Financial, we can help you understand all of your refinancing options, and help you determine which one will best help you meet your financial goals. If you decide that refinancing is right for you, you can apply with us easily using our convenient online form. Downs Financial is a direct lender, which means we use our own money and make our own decisions about whom to lend to. Cutting out the middle man means that you'll receive same day loan approval, and we pass our savings on to you in the form competitive interest rates and low fees, so you get the best loan possible for your needs.