After becoming a homeowner, there are several reasons why one would opt to refinance. Changes in interest rates, the economy, financial goals and even life events all might create a need. Many times your home can help you meet your goals today and well into the future. Because of our expertise and local roots, McLean Mortgage Corporation is in the ideal position to provide you with a variety of choices by advising you regarding the best direction to take when making this all-important financial decision.
What Are The Reasons Someone Would Refinance Their Mortgage?
Making a decision to refinance calls for the consideration of many variables. The term, loan amount, closing costs, rate and the type of mortgage can all be a factor in making the right decision.
Build Up Equity
McLean can present options that will allow you to payoff a mortgage in 20, 15 or even 10 years and these options are typically offered at lower rates than the typical 30 year mortgage.
Lower Monthly Payment
When market rates are lower than the present rate on your mortgage, a refinance may translate into hundreds of dollars in monthly savings.
End Costly Mortgage Insurance
A combination of home appreciation with paying down your mortgage over time can put you in position to eliminate your monthly mortgage insurance payment.
With sufficient equity in your home it may be possible to consolidate debts and significantly lower your total payments. Sometimes portions of these savings may be applied to shorten the term of the new mortgage.
Safety from Adjustables
With an adjustable rate mortgage (ARM) there is a risk of rising payments after rates adjust. Refinancing at the end of this period allows you to experience the benefit of the adjustable and then return to the safety of a fixed rate.
The equity in your home can also be used for purposes other than consolidating debts. You might use the equity to fund a retirement plan, purchase an investment property or pay for a wedding or college.
Receive a FREE Mortgage Analysis
At McLean Mortgage we are dedicated to making sure you make the right decision with regard to refinancing your mortgage. That is why we offer a FREE Mortgage Analysis from an expert mortgage advisor which will help determine whether you would benefit from refinancing and what options would help you achieve the maximum level of benefits. If you have a financial advisor, we will work with them to make sure this new mortgage fits into your overall financial plan so that you can achieve your long-term financial goals more efficiently.