You have more refinancing options than ever before thanks to today’s lenders. So, whether you want to lower your monthly payments or lower your rates, you can find financing that is right for you.
You can also compare loan quotes online without harming your credit score, thanks to lenders. So, using real numbers, you can figure out which lender and loan are best for you. Knowing how much you can save takes the guesswork out of the refinancing process.
A Fixed-Rate Mortgage’s Stability
Refinancing to a fixed-rate mortgage can help you save money while also providing peace of mind. You can know exactly how much your interest will cost and how long your loan will last by setting your mortgage rate today.
Fixed-rate mortgages also allow you to buy down the interest rate, potentially saving you thousands of dollars over the life of the loan. You can also reduce your monthly payments by extending the loan term.
With an adjustable-rate mortgage, you can bet on lower rates.
If you refinance with an adjustable-rate mortgage, you’ll be eligible for some particularly low rates for a year or more. You can save hundreds of dollars per month with these introductory offers.
There’s a chance that interest rates, as well as your monthly payments, will rise. You may also see your mortgage lengthen due to high rates, depending on your caps. However, if you aren’t planning on keeping your loan or house for an extended period of time, the savings may be worth the risk.
Refinancing Your Home To Cash Out Your Equity
Cashing out a portion of your equity as part of a refinance saves you money on application fees and higher rates than a separate home equity loan. You can still choose between fixed and adjustable rates when you withdraw your equity. You can also choose to extend or shorten the term of your loan.
Inventive Phrases for Unusual Situations
For those in unusual circumstances, interest-only loans and other creative loan terms can be beneficial. For example, if you plan to move in a year, refinancing with an interest-only loan can save you hundreds of dollars on your mortgage payments. You won’t have to worry about high payments if you sell before the loan payments increase.