Did you know that refinancing is a powerful tool? Aside from interest rates, other reasons to refi include improving your term or getting cash out of your home’s equity. The loan originators at Guardian Mortgage would love to walk you through any questions regarding refinancing and whether it could benefit your unique situation and goals. Take a look at a few reasons to refinance this summer.
1. Rates are still good
It’s not too late to get a great rate. According to a survey by Freddie Mac(Opens in a new window), interest rates are still very low, which should serve as an incentive for homeowners looking to refinance and lower their payments.
You may also be pleasantly surprised at what improved credit can do to your interest rate. Generally speaking, the higher your FICO® credit score, the lower the rate. So, if you’ve been working on increasing your credit score, talk to a loan professional and see if you qualify for a better rate as a result.
2. Summertime is a great time
Summer days mean more daylight hours for projects and more time to enjoy the results. There are so many possibilities for getting the most out of your cash-out refinance: start that construction project you’ve always dreamed of; get a pool and watch your home become the center of family fun; hire a landscape designer to make your outdoor environment magical. Plus, when you spend funds on projects that add value to the home, you build equity.
Summer is also a great time to turn your visions into reality: take the family on a dream vacation, buy an RV and explore the country, or check off destinations on your bucket list. Living your best life is a wonderful gift and research(Opens in a new window) suggests that experiences actually make people happier than material possessions.
3. Make college manageable
Sending a child to college is exciting and scary. Huge tuition payments and the prospect of endless student loans can create stress and uncertainty. However, if you leverage enough equity in your home, refinancing may be able to help pay for college and alleviate worry for the future.
With a cash-out refinance, the mortgage amount is increased, and you pull out the difference in cash. Situations vary, but depending on several factors your new monthly payment may not be much different from your current one. In the long run, it might be more manageable than student loans and could also offer tax benefits.
These are just a few reasons to explore refinancing now. There are many financial aspects to consider when working with equity and mortgages — an experienced Guardian Mortgage loan originator will be able to walk you through some options so that you can decide what’s right for you. We hope you’ll contact us and learn more about the financial strategies that can benefit your summer… and your future.
CONTACT A LOAN EXPERT