Is It Time For a Refinance?
Life comes at you quickly! Of course, you don’t need us to tell you that. Have you or an acquaintance recently have a major life change? Are you anticipating a major life change? If so, a refinancing of your mortgage could help you prepare for such life change!
Here are some (but not all) major life changes that could be best served with a refinance:
- It’s time to upgrade to a larger home
- You want to lower your overall debt payment
- A divorce happens
- To pay for your kids’ college
- You have paid off your house and would like to make it an investment
- You have decided to start your own business
- It’s time to buy a second house
- You would like to get rid of any accessory costs (PMI, restriction and subsidies costs) associated with the original purchase
So how can a refinance help me out with these life changes?
Well, for a baseline definition, a refinance is where you take out a loan to pay off the existing mortgage. A refinance can give you immediate financial flexibility and relief. Here are some reasons as to how a refinance can provide you with more financial flexibility.
You can get a lower rate on the mortgage
if the rates have lowered since you initially took the loan, you can tap into the lower rates. That will potentially save you thousands of dollars in interest expense. That money can be used for more noteworthy things!
If there is lots of equity in your home, you can opt for a cash out refinance. This is a good option if you have several bills to pay, or if you need cash for a large purchase.
Change term length
Suppose you are able to budget more money for a monthly payment. Why not pay off the home quicker and also reduce your interest expense? That is the benefit of refinancing from a 30 year mortgage down to a 15 or 20 year mortgage.
Allow Black Diamond to help you secure the best refinancing option for your needs