Should you refi your mortgage?
Find out if it makes sense for you to take advantage of low interest rates by refinancing now.
Historically low interest rates have homeowners across West Michigan wondering if it’s a good time to refinance their mortgages. For many, it is! Here are three reasons why it might make sense for you to refi.
Lower your monthly payment
Lower interest rates simply mean lower monthly payments. If current mortgage rates are lower than your existing mortgage, it’s worth figuring out if the time is right for a refi.
It just takes a few moments to use our Mortgage Refinance Break-Even Point Calculator. You’ll need to gather some info to get started:
- Your current mortgage monthly payment and balance
- Current interest rate of the loan you want
- Estimated closing costs; typically 1%-3% of the new loan amount depending on how large a loan you are considering
If you’re planning to stay in your home longer than the break-even point, refinancing is a smart money move for you.
Lock in a low rate
Borrowers with adjustable-rate mortgages (ARMs) who plan to stay in their homes a long time often switch to fixed-rate loans when rates are low. Locking in a low rate means they no longer have to be concerned with the ups and downs of mortgage rates.
Tap into your home equity
Home sweet home is more than a place to live—for most people, it’s one of their most valuable assets. Refinancing allows you to tap into your home equity without having to sell. With a cash-out refi, the new loan pays off your old mortgage and you get cash to use as you wish. In general, you can finance up to 80% of your home’s equity.
Consumers helps more than 1,300 members finance land, first and second homes, and home improvement projects each year. If you’re ready to refi or have questions, get in touch with a member of our mortgage lending team or give us a call at 800-991-2221. We’re here to help you!