Refinance to shorten the term of your loan
Refinancing your mortgage to a shorter term reduces the amount of interest you will pay over the life of the loan. And, the shorter loan term accelerates the accumulation of home equity since a larger portion of each payment is applied to principal reduction.
Refinance to lower your interest rate
If your home is now financed at a higher interest rate, it may be a great time for you to consider refinancing. Securing a lower interest rate can result in a lower monthly payment and a significant reduction in the amount of interest you will pay over the life of your loan.
Refinance to lower your payment
A lower monthly payment is often a result of lowering your interest rate. However, there are other factors that result in a lower monthly payment such as eliminating or reducing your mortgage insurance premiums, the ability to refinance at a lower principal balance than your original mortgage, or increasing the term of your loan. A lower monthly mortgage payment increases the amount of your monthly disposable income and improves your cash-flow situation.
Refinance from an adjustable-rate mortgage to a fixed-rate loan
If you currently have an adjustable-rate mortgage, now may be the perfect time to refinance into a fixed-rate loan. Locking into a low, fixed rate can protect you from rising interest rates in coming years. Additionally, a fixed payment is easier to plan for and budget.
Refinance to cash out home equity
You can access your home equity by refinancing your home. Whether it be for a major purchase, debt consolidation, funding a college education, starting a business, an investment opportunity, or some other purpose – a cash out refinance can be a powerful financial tool.
Atlantic Financial is committed to helping our clients achieve their financial goals. Let us assist you in determining if a refinance is right for you.