Should You Refinance?
Why refi? Well, there are at least 7 reason you should consider in refinancing your home mortgage. Obviously, the most common reason to refinance is to lower your rate. These days it a great decision to refinance since interest rates are at an all time low level in America. Lending guidelines are much tighter that in the past, so, you must have fair to great credit to get a refinance. Of course, the lender will look at the other factors and considerations in getting you an approval. If you have a good job for more than 2 years and meet the underwriting guidelines for debt to income ratios, you should have no problem getting approved. Of course your home will have to meet the appraisal standards for the loan.
So, lets detail the 7 most common reasons to get a refinance:
1. Lower your interest rate to a better rate, which saves you money in most cases.
2. Get out of an adjustable rate mortgage and get into a fixed rate mortgage.
3. Take some cash out from the equity you have in your home to make home improvements or pay for other things like debt reduction.
4. Take some cash out of your home equity to pay for a college education, re-roof your home or other important reasons which could help you in the long run.
5. Refinance your home to take some cash out and use the money for an investment, like purchasing another property.
6. Refinance to take out an equity line of credit to start a business, draw from the equity line anytime you want to have reserves on hand as a private business owner.
7. Incase of a divorce, refinancing may be a good option to pay off the spouse or husband to retain the home instead of selling it. Perhaps a family member is facing a foreclosure and you need to help them with some money, well, you could refinance your home and provide them the needed money to help them keep their home and make a more comfortable payment.
So, as you can see, there are several ways you can benefit from refinancing a home. You should give us an opportunity to evaluate your situation and help you get into a new loan.