Four Reasons to Refinance
When you think about refinancing your mortgage, we know what comes to mind: Mountains of paperwork. Confusing acronyms. What is APR? PMI? LTV?!
Thankfully, we’re here to provide some relief from overwhelming terms and bring clarity to the process. As a start, let’s break down some common benefits of refinancing.
Reduced monthly payments
Looking to relieve financial stress? Refinancing into a lower interest rate can lower your payment. Additionally, if your current mortgage is on a 15 year or 20 year repayment period, for example, refinancing into a longer repayment period (30 years) can reduce monthly payments.
Pay it off sooner
This is a great option if you can afford the monthly increase that often comes with a shorter repayment period. A shorter payback means faster loan payoff and oftentimes thousands of dollars of interest saved over the loan term!
Life changes, so can your mortgage!
Maybe you purchased your home using an Adjustable Rate Mortgage and you’ve decided to stay longer, making now the right time for a Fixed Rate loan. Or perhaps you’re ready for that large home improvement project and should explore our construction product. Sometimes it’s a different mortgage product entirely that will benefit you the most!
Maybe you’ve paid down your loan balance to a point where you’re able to do a cash-out refinance. Cashed-out funds are commonly used for small home improvement projects and even reducing other debt. Instead of using up your savings, tapping into the equity you’ve built with your home can be an advantageous option.
We make the complicated, simple. Don’t let the stress of refinancing keep you from applying for the mortgage loan that is right for you! Our Loan Officers will help you determine what suits you best. Great Midwest Bank is right around the corner in your community, and your new mortgage could be too.