Common Reasons For Refinancing.

Dated: 01/20/2020

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Refinancing your mortgage is something most homeowners consider at least once throughout

the lifespan of their home loan. It allows you to pay off your previous loan by applying for a

new one that has better financial advantages. While there are many good reasons to refinance,

here are five common ones.

Scoring a lower interest rate. The number one reason homeowners decide to refinance is to 

secure a lower interest rate on their mortgage. Not only does this save you money in the long

run and decrease your monthly payment, but you can start building equity in your home sooner.

Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve

improved your credit score over the last few years, you may be able to reduce your mortgage rate.

Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to

get a shorter loan term with little to no change in your monthly payment, allowing you to pay off

your loan sooner.

Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with

great introductory rates when you initially financed your home, that rate may increase significantly

over the years. By switching to a fixed rate while interest rates are low, you can protect yourself

from future increases.

Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a

wedding or going back to school, your best option may be to use the equity you’ve built in your

home to borrow money at a lower cost.

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Terrel D. Terrell

I'm here to provide you with the best service possible to meet all of your needs. If you are in the process of buying, selling or renting a property, my team and I can make it happen for you. We're ....

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