Refinancing – Making Dreams a Reality
If you have a mortgage on your current home, you probably receive offers for “refinancing” your loan on a regular basis. The offers vary, and the messages you receive may look and sound different from each other. Refinancing—that means going through a lot of effort, right? Is it worth it? In many cases, yes; it is. We’ve put together a list of benefits on how refinancing your home can make a difference in your life right away and in the long term. When you see the facts, you may determine that refinancing is right for you.
Benefits of Refinancing in the Short Term
- Cash Out for Renovations – If you have dreams of granite countertops or a new back deck, refinancing your mortgage could be the best way possible to make those dreams a reality. It is possible to refinance your mortgage and get cash back at closing to put towards renovations.
- Streamline Monthly Payments – Paying your mortgage, three credit cards, a personal line of credit and several other smaller bills each month can be a burden. Why not streamline that payment process by refinancing? Pay off those lower bills and roll the debt into your mortgage and you will only have the one payment to worry about each month.
- Lower Payments – If you get a lower interest rate, and don’t take cash out (or don’t take too much out), you will naturally obtain lower payments from the process. Most of us can appreciate paying less each month on our mortgage, right?
Long-term Benefits of Refinancing
- Lower Interest Rate Saves You BIG – If you look at what you pay for your home, most of the payment each month is going towards interest, not principle. Since you are paying so much towards interests, this means that refinancing for a lower interest rate is going to help you save big in the long run.
- Pay Off High-Interest Loans – If you use the proceeds of refinancing to pay off high-interest loans, you are putting money in your pocket. Refinancing can be one of the best ways to get out of the habit of relying on payday loans or credit cards to live month to month.
- Make Improvements to Sell Home – If you plan to sell your home one day, making improvements today with the proceeds of refinancing could get you a better sales price later. This is one reason many people think about those renovations!
Now that you’ve discovered how beneficial refinancing your home loan can be, perhaps you would like to talk to someone about how to get started. Liberty Financial handles many loan refinances every year. We work with clients just like you and help them save money, streamline payments and get their financial lives in order. Plus, the process is easier than you imagined it would be. Contact us today and let us show you how we can make your dreams a reality with refinancing.