Did you miss out on refinancing your home in 2013? No problem, 2014 is also a good year to cross this off the list. What makes it an even more preferable option? The process does not take more than a few weeks. And the benefits? You get to enjoy them for a long time to come! So why not go through a little pain initially and let the future be filled with rewards?
We caught up with a representative of a lending agency for an interview. He told us that nearly 2 million people opted for refinancing in the last year. However, there are still some people who did not feel like going through the hassles then. He also advised us that those people who have yet to refinance their mortgages can do so now because all financial agencies will offer them attractive deals.
Here is why we believe you should refinance your mortgage.
You can still find a lower interest rate
What is the interest rate on your current mortgage? We are pretty certain it must be high, when you compare it with the rates being offered in the industry today. Depending on how old your mortgage is, the difference in rates will vary. But we would like to state that even if it is in points, it still accumulates to a significant amount of money in the long run. Go for refinancing, and you can save all of this.
You can reduce your loan term
An added advantage of refinancing your mortgage right now is that you can convert your loan to a short term one, which means you will be able to pay off the loan faster. Find out about the monthly payments you will have to make with the new interest rate and terms, and more than likely they will be the same as the one you pay right now. In some cases, it might be slightly higher but do not ignore the fact that you pay off the loan more quickly and you also save money by paying reduced interest amounts.
You can combine your loans
If your loan for home equity or credit line is based on a greater interest rate than your mortgage, you can refinance both loans and enjoy a decrease in the overall monthly payments.
So think more about refinancing and don’t miss out on your chance this year.