Have you seen interest rates slide since you received your mortgage loan? While rates tend to make only small changes, sometimes these rate drops can make it worth your while to consider refinancing to save money on your mortgage costs.
These tips can help you figure out whether it may be time to refinance.
If interest rates have gone down a percentage point or two since you purchased your home, refinancing mortgage loans can help you whittle down your monthly payment. That small percentage may equal a few hundred extra dollars each month, which over time adds up.
If you have an adjustable rate mortgage or balloon loan, you may want to consider refinancing into a fixed rate mortgage. Your interest rate and term will be fixed, making payments and budgeting more predictable.
Another reason to refinance your home may be to shorten the length of your loan. Let's say interest rates have gone down, while value of your home has gone up—you may be able to refinance your home to a shorter loan term. For example, by going from a 30-year-fixed loan to a 15-year-fixed loan you'll pay off your mortgage sooner and at a lower interest rate.
By tapping into the equity in your home, you can have extra funds available for debt consolidation, home remodeling projects, major purchases or other financial needs.
Refinancing your mortgage is one piece of a larger home loan puzzle—you'll need to consider several factors besides just lower interest rates:
We can help you determine whether mortgage refinancing will save you money. To learn more about the advantages of KeyBank Mortgage®, home equity mortgage refinancing, loans and more, please contact us. Your session includes a consultation to determine what type of loan you could qualify for.