Build Equity. Consolidate Debts.
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.
Should You Refinance Your 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.
What Are Some Common Reasons For Refinancing?
Lower Monthly Payment
When market rates are lower than the current rate on your mortgage, refinancing may translate into larger monthly savings.
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 30 year mortgage.
End Costly Mortgage Insurance
A combination of home appreciation & paying down your mortgage over time can put you in position to eliminate your monthly mortgage insurance payment.
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 benefit from the adjustable and return to the safety of a fixed rate.
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.
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.