Top 5 Advantages Of Mortgage Refinancing
Category : Mortgage Loans
Mortgage Refinancing is a process of replacing an existing loan with a new one in order to reduce monthly payments, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies. Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the worth of the home.
There are many advantages of mortgage refinancing but one of the main advantages of refinancing regardless of equity is reducing an interest rate. A lower interest rate can have a profound effect on monthly payments, potentially saving you hundreds of dollars a year.
Here are the top 5 amazing advantages of refinancing your mortgage:
- The first and the most useful advantage of mortgage refinancing is lower your monthly payment.
- The second important advantage of mortgage refinancing is shortening the tenure period of the existing mortgage loan. For example, if the tenure period of your existing mortgage loan is 30 years and it seems to you that paying the same amount each month for as long as 30 years is not possible for you, you can transfer the tenure duration of your existing mortgage from 30 years to 15 years, or even to 10 years. This will definitely ensure your future security more prominently.
- Mortgage refinancing provides you a chance to shift from an FRM to ARM. If you have an adjustable rate mortgage (ARM) you could lock into a fixed rate mortgage (FRM) and gain the security of knowing what your mortgage payments will be for the life of your mortgage.
- Another big advantage of mortgage refinancing comes with the cash-out refinancing option. You can take advantage of some of the equity you have built up in your home over the years.
- You can use the equity value of your home by cash out refinancing to get rid of debts. As a large mortgage is tax deductible, unlike credit cards, it becomes an extra benefit for you. By this way, you will save money and pay off your debts simultaneously.
The Bottom Line:
Mortgage refinancing is a great financial move to reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. Refinancing your mortgage is also helpful in getting your debt under control. If you are considering refinancing your mortgage, you are advised to look at your financial situation and the market rates carefully and then consult with your most trustful mortgage loans lender to choose the best option to avail the real advantages of mortgage refinancing.
Magna Capital Group, Inc has more than 30 years experience in the financial services business. We provide hassle-free home equity loans and mortgage refinancing with lowest interest rate and flexible terms. For more information about refinancing your mortgage, Call (310) 734 4044 or Email at info@magnaloans.com or Visit www.magnaloans.com.