Mortgage rates have recently dropped to their lowest levels in over a year. Here are two ways you may be able to benefit:
1 – Refinance your current home loan to lower your interest rate.
This would involve paying off your current home loan with a new home loan that has the same or similar balance. While the monthly savings may or may not be significant, the long-term savings are often very significant. I can run the numbers for you to see if this makes sense.
2 – Refinance your current home loan to take "cash-out."
This is where you pay off your old home loan by getting a new home loan with a higher balance. The difference between the old loan and the new higher-balance loan is called "cash-out." That's because you're walking away from the new closing with cash. You would need some equity in your home to make this work. This may benefit you if you'd like to:
- Consolidate other debt that may carry a higher interest rate;
- Make home improvements; and/or,
- Prepare for a large upcoming expense.
Contact us for more information or to run the numbers for your specific scenario!