3 Signs You Should Refinance Your Mortgage

Posted on: 6 February 2017

When you first signed your mortgage paperwork, you might have intended on keeping your loan the same way until paying your mortgage off. However, in some cases, refinancing can be a smart move. These are a few signs that you should consider refinancing your mortgage.

1. You Can't Afford Your Payments

One good thing about refinancing your mortgage is the fact that it can allow you to reduce your monthly payments. If you have been having trouble making your payments — such as if your expenses have greatly increased since you first bought your home or if you aren't making as much money — then refinancing can be a good way to be able to keep your home when you might not be otherwise able to afford it. It can also provide you with some breathing room in your budget.

2. You Want to Enjoy a Lower Rate

When you originally financed your home, there is a chance that interest rates were higher than they are now. You might have also had to buy your home at a higher interest rate due to credit issues, but you might qualify for a lower rate now. If you are able to refinance your home at a lower interest rate, you can save thousands and thousands of dollars over the lifespan of your loan, so this is definitely something that you should talk to a banker about.

3. You Want to Use Your Home's Equity

If you have built up a lot of equity in your home, then you might be thinking about using this money for something else, such as investing in another property or making major home improvements to your current home. You might have thought about taking out a home equity line of credit, but an even better option can be to talk to someone at your bank about refinancing. This can provide you with the opportunity to restructure your loan while also being able to use your equity to pay for other things.

As you can see, there are many different situations in which refinancing your home can be a good option. Many people are nervous about doing so, but it can actually be a smart financial decision. If you'd like to find out more about refinancing your home or if you think it might be the best option for you, consider scheduling an appointment to sit down and talk to a banker about it. Then, you can find out more about the pros and cons and can determine if it's the right choice for your mortgage and financial situation. 

For more information, contact local professionals like Titus Financial Ltd.