Are you looking for ways to lower your monthly mortgage payments and have more money in your pocket? Refinancing your home may be the perfect solution for you and your finances! 

Reasons to Refinance

With a refinanced loan, you can potentially shorten or lower interest rates on existing debt, customize payment terms to suit your budget needs, switch from an adjustable rate to a fixed rate, consolidate debts into one loan and access any built-up equity. Whatever the motivation behind it, refinancing has become increasingly popular among today’s homeowners who are seeking financial security and freedom. 

Lower Interest Rates

Hands shaking over paperworkOne of the reasons to refinance your home is that you may be able to secure a lower interest rate. By choosing a different loan plan with a lower interest rate, you are essentially paying less in total interest, leading to huge long-term savings. 

Refinancing also provides the opportunity to shorten or lengthen the length of your mortgage term, helping you manage your budget now and in the future. With so many advantages available to refinancers, having access to a lower interest rate should be considered one of the most beneficial reasons for refinancing your home.

Change Rates

Refinancing your home is a great way to potentially save money and re-evaluate your financial situation. One of the reasons to refinance your home is to move from an adjustable rate mortgage (ARM) to a fixed rate loan. This could be beneficial because with a fixed rate, you will not have to worry about any potential increases in your interest rate due to market fluctuations. 

Keep in mind that when switching to a fixed rate you should look at the total cost associated with a refinance, as it may result in either saving or costing more money depending on the details of your new loan and current financial situation.

Consolidate Debt

Young couple signing paperworkRefinancing your home can be a great financial move, and one of the reasons many people choose to do so is consolidate debt. Having all your debt wrapped up into one loan may help make it easier to manage by having a single monthly payment, as well as potentially reducing overall interest payments. Whether those reasons sound appealing or not, it’s important to carefully consider if the reasons to refinance your home is the right decision for you and your family.

Access Equity

With housing prices generally increasing year to year, the equity that you build up in your home during ownership can be one of many attractive reasons to refinance your home. With a refinance loan, you, as a homeowner, are able to tap into this built up equity and use it however you please. Whether you’d like to pay off high-interest debt or make necessary home improvements, accessing built up equity is one of the reasons to refinance your home, so it’s important for homeowners to weigh their options carefully and choose the option best suited for them.

Providing Additional Opportunities

Refinancing your home can be a great way to maximize the equity you have built in your home. It can lower your current interest rates, shorten the terms of your loan and help reduce your monthly payments. Additionally, it can provide you with access to cash for personal reasons or investments, giving owners even more reasons for refinancing. 

There are many reasons why refinancing can be beneficial and worthwhile if done correctly; so it’s important to research the benefits and drawbacks before making the decision. If you think this might be the right step for you, reach out to a professional loan officer to go over all of your options.

Find Your Refinance Options at Union Capital Mortgage!

Our team members at Union Capital Mortgage offer a variety of programs to meet your needs and can help you get the best deal possible on your mortgage. Our experienced loan officers are ready to answer any questions you may have and help you through the process. Call us at (440) 585-5626 or visit our website to schedule your appointment!