(LS) — This lousy economy does present the occasional advantages to consumers – like low mortgage rates that make this the perfect time to refinance a home. However, just because it’s a good time to refinance your mortgage doesn’t mean it’s the right time for you to refinance your mortgage. While there are four valid reasons to refinance, you need to sit down and evaluate your budget and decide what is best for your family in both its immediate and long-term future. Only then can you weigh the advantages of refinancing with the needs of you and your loved ones.
What Can You Gain by Refinancing Your Mortgage?
There are four advantages to refinancing your home:
- Lowering your Monthly Payment
There’s a reason why interest rates are so low – times are tough. The car breaks down, the family grows by another mouth to feed… things happen. If you need to free up money for other expenses, then refinancing your home may be a great option for your family.
- Thinking About the Future
Even if you don’t need to save money, this could be an excellent way to provide for your family in the future. If you have a flexible-rate mortgage, and interest rates skyrocket in the future, you will severely regret not locking in a low rate while you had the opportunity.
- Getting out of Debt
If your credit card debt and student loan payments pile up, and you also have a mortgage, then it makes sense to shift your debt where it is most cost effective. Fixed-rated mortgages can be had at 5 percent right now, but credit card rates are averaging 15 percent. By refinancing your home, you can lower your payments and avoid accruing more interest by devoting more of your assets to paying off the credit cards.
- Getting Your Hands on Cash Now
Say a business opportunity comes along that you just can’t refuse, but you don’t have the capital to invest. This is the perfect time to refinance your home and get a cash return on its equity, freeing up assets to be reallocated as needed.
No matter what your motivation, refinancing your home could be the right move for you and your family. To find out more, go to SmarterRates.com.
